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Bass Metals www.bassmetals.com.au/

Bass Metals (ASX: BSM) has a portfolio of zinc, lead, copper and gold assets in the rich Mount Read Volcanic mineral belt in northwest Tasmania.

 

The company’s growth strategy previously centred on the development of a ‘pipeline’ of production, near-production and exploration assets in the belt.

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Bass Metals revived by sale of Hellyer to LionGold Corporation

Bass Metals (ASX: BSM) has gained a new lease of life with the sale of its subsidiary Hellyer Mill Operations to Singapore’s LionGold Corporation.

The Company will sell Hellyer for $13.5 million in cash payable at closing and in 30 day's time.  LionGold will take a placement in Bass Metals of 58 million shares at $0.01 each worth $580,000.

Following the sale, the company’s forecast free cash position will be around $6 million, along with an additional $2 million which will be held in a retention account in favour of LionGold and will revert to Bass Metals after 12 months.

The sale will enhance Bass Metals’ balance sheet, providing the company with a cash injection of $A13.5 million and leaving it with no debt.

LionGold Corp is an SGX-listed investment holding company focusing on gold mining, mine development and exploration.

Hellyer Mill Operations owns the Hellyer tails gold Resource, processing plant, Hellyer Mine licence and has a sublicence agreement with Bass Metals over the Mt Charter Gold Resource.

The Hellyer tails gold Resource is 9.5 million tonnes at 2.6 grams per tonne (g/t) gold, 104g/t silver, 2.5% zinc, 3% lead and 0.2% copper, of which nearly 5 million tonnes is in the high confidence Measured category.

Bass Metals will retain exploration rights over the Hellyer Mine lease, with a focus on base metals, through a sublease agreement.

The Hellyer plant is expected to remain onsite and Bass Metals may use it subject to availability, though LionGold may redeploy certain components.

Further upside to the deal is the strategic partnership to result, with LionGold and Bass Metals to negotiate potential collaboration on exploiting new deposits discovered in Tasmania. Bass Metals will focus on base metals while LionGold will focus on gold.

As the Hellyer site operations continue to wind down, Bass Metals’ corporate expenses will be scaled back in line with those of non-producing minerals exploration and development business.

Bass Metals will now seek shareholder approval of the deal at the General Meeting in mid-August.


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