StratMin Global Resources Plc (LON:STGR) is reviewing some “very high quality opportunities”, so says chief executive Brett Boynton. The company is required to make a new acquisition if it is to retain its listing on London’s AIM, following the divestment of its main asset in September when it became a shell company.
Management has in recent months focussed on opportunities in the precious metals sector and today the company told investors it has identified a number of interesting prospective projects.
It highlighted the group’s management has experience and expertise in gold projects, and that the gold price has improved in the past year. “The board is of the opinion that there are significant opportunities for the company in this sector,” Stratmin added.
The company also noted there was a possibility that the TMV (or Tirupati Resources Mauritius) flake graphite venture – a vehicle it currently has a 1.74% stake in – could be opened up to new investment in order to accelerate project development.
It may in turn see a stock market flotation of TRM, as operations at the venture’s Vatomaina plant are commissioned.
Stratmin presently retains 1.74% of TRM, and it is agreed that any new investment in the venture would be at a minimum entry price equal to StratMin's existing investment.
The company noted that it still intends to complete a reverse takeover (RTO) acquisition, but, it may revisit the possibility of participating in TRM’s Vatomaina project, only after an acquisition is done.
Boynton in a statement said: "The team is conscious of working to complete a suitable transaction in order to maintain the company's admission to trading on AIM.
“Nothing has been decided yet, but we can say that we are reviewing some very high quality opportunities.
“Opening the TMV project to new investment enables StratMin to focus on the RTO requirement and dedicate cash to that effort."