Strategic Minerals PLC Cobre Client Update (1047A)
May 24 2019 - 2:27AM
UK Regulatory
TIDMSML
RNS Number : 1047A
Strategic Minerals PLC
24 May 2019
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
24(th) May 2019
Strategic Minerals plc
("Strategic Minerals", "SML" or the "Company")
Cobre Client Update
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a producing
mineral company actively developing projects prospective for
battery materials, wishes to inform the market that its wholly
owned subsidiary, Southern Minerals Group ("SMG"), has reached an
agreement with its major client at Cobre in relation to arrears to
date and payments going forward.
The major client has informed SMG that it anticipates having
significant funds very shortly and has asked SMG to refrain from
progressing legal action for two weeks. During this two week
period, the major client has agreed to pay arrears of US $375,000
and top up the existing deposit, held by SMG, by US $3,690,000. The
major client has indicated that it wishes to negotiate the balance
of the contract during June and has agreed to the increase in the
deposit amount to reflect its good faith in this regard.
Highlights:-
-- Potential receipt of US $4,065,000 within two weeks
-- Intention to clarify contract in June 2019
John Peters, Managing Director of Strategic Minerals,
commented:
"SMG has now received written confirmation of the major client's
intent to make payment of over US $4m in the next two weeks which
would place the SML group in an attractive position to advance its
various projects.
"The Company will keep the market fully informed of further
developments and of the receipt of funds."
For further information, please contact:
+61 (0) 414 727
Strategic Minerals plc 965
John Peters
Managing Director
www.strategicminerals.net
Follow Strategic Minerals on:
Vox Markets: https://www.voxmarkets.co.uk/company/SML/
Twitter: @SML_Minerals
LinkedIn: https://www.linkedin.com/company/strategic-minerals-plc
Facebook: https://www.facebook.com/search/top/?q=strategic%20minerals%20plc
+44 (0) 20 3470
SP Angel Corporate Finance LLP 0470
Nominated Adviser and Broker
Ewan Leggat
Lindsay Mair
Notes to Editors
Strategic Minerals Plc is an AIM-quoted, operating minerals
company actively developing projects prospective for battery
materials. It has an operation in the United States of America and
Australia along with development projects in the UK and Australia.
The Company is focused on utilising its operating cash flows, along
with capital raisings, to develop high quality projects aimed at
supplying the metals and minerals being sought in the burgeoning
electric vehicle/battery market.
In September 2011, Strategic Minerals acquired the distribution
rights to the Cobre magnetite tailings dam project in New Mexico,
USA, a cash-generating asset, which it brought into production in
2012 and which continues to provide a revenue stream for the
Company. This operating revenue stream is utilised to cover company
overheads and invest in development projects orientated to
supplying the burgeoning electric vehicle/battery market.
In January 2016, the portfolio was expanded with the acquisition
of shares in Central Australian Rare Earths Pty Ltd, which holds
tenements in Western Australia prospective for cobalt, nickel
sulphides and rare earth elements. The Company has since acquired
all shares in Central Australian Rare Earths Pty Ltd. In September
2018, the Company entered contracts for the sale of certain CARE
tenements identified as gold targets.
In May 2016, the Company entered into an agreement with New Age
Exploration Limited and, in February 2017, acquired 50% of the
Redmoor Tin/Tungsten project in Cornwall, UK. The bulk of the funds
from the Company's investment were utilised to complete a drilling
programme that year. The drilling programme resulted in a
significant upgrade of the resource. This was followed in 2018 with
a 12-hole 2018 drilling programme has now been completed and the
resource update that resulted was announced in February 2019.
In March 2018, the Company completed the acquisition of the
Leigh Creek Copper Mine situated in the copper rich belt of South
Australia and brought the project into production in April
2019.
The Company, in March 2019, entered into arrangements to acquire
the balance of the Redmoor Tin/Tungsten project in Cornwall,
UK.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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