BASS Metals Ltd (ASX: BSM), a mineral exploration company confirms the completion of the capital raising on 14 December 2018. It has received a commitment from the firm for a strategic capital raising through the placement of shares worth $3.3 million with the issue price of $0.0125 per share. Those investors who will subscribe the placement will be entitled to receive an unlisted option which can be exercised at an exercising price of $0.05 before 31 December 2020. The investor who subscribes two shares will receive one unlisted option.
During the phase of capital raising, the company has received a strong demand and support from its existing shareholders. The purpose of this capital raising is to fund its drilling process of mineral resources, stage 2 expansion of equipment cost and working capital at the Graphmada Mine. The company has also received commitments from the Directors and management where they will be subscribing a portion of placement which requires necessary approvals from the shareholders of the company
Once the entire process of the share placement completes, there will be a net revenue worth $5.5 million as cash and receivables in hand.
Since the inception of the company, its performance was -77.68%. The ten years performance of the company was 79.62%. The company's performance in the past five years was 248.89%, and after that, the performance till date remains negative.
For the FY2018 ended on 30 June 2018, the company made a net loss of $4,448,178. The balance sheet of the company appears to be healthy. Its debt-equity ratio is 0.112. The company maintains a strong net asset base of $16,753,023 which implies its potential to meet its long-term obligations. The company holds a total current asset of $6,290,524 and total current liabilities of $772,005 which means that the company is in a position where it can meet the requirements of the working capital as well as short-term obligations. However, there is an increase in the accumulated loss as compared to the FY2017 which could create a negative impact on the shareholders of the company. It is also an indication that the company’s operating performance was not up to the mark.
Through the operating activities, there was a net cash outflow of $4,856,685 from the company. The significant cash outflow was in the form of payment made to the suppliers and the employees.
Through the investing activities, there was a net cash outflow of $4,390,278 from the company. The significant portion of this cash was in the form of purchase of property, plant, and equipment. The other sources of cash outflow were in the form of payment for the exploration and evaluation of the assets and payment for deferred acquisitions.
Through the financing activities, there was a net cash inflow of $12,935,868 from the company. The cash generated was through the issue of shares and convertible notes.
The net and cash equivalent by the end of FY2018 was $4,604,427. At present, the market price of the share is A$0.014 (AEST: 1:52 pm, 14 December 2018) with the stock holding a market capitalization of A$35.55 million.
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