Strategic Minerals PLC Cobre Access Rollover Confirmed (5656D)
March 03 2022 - 8:46AM
UK Regulatory
TIDMSML
RNS Number : 5656D
Strategic Minerals PLC
03 March 2022
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has
been incorporated into UK law by the European Union (Withdrawal)
Act 2018.
3 March 2022
Strategic Minerals plc
("Strategic Minerals" or the "Company")
Cobre Access Rollover Confirmed
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a profitable,
producing mineral company is pleased to confirm the rollover of
access to the magnetite stockpile in New Mexico for the tenth
consecutive year.
Cobre Update
The 10(th) yearly rollover of access to the Cobre magnetite
stockpile ensures continuity of profitable operations for the year
ahead and augurs well for future rollovers.
While the quarter ended 31 December 2021 and January 2022 saw a
significant drop in demand, February 2022 has seen sales 12% higher
compared to February 2021 and the first two months of 2022 combined
are only marginally below that of comparable 2021 sales.
CV Investments LLC
On 22 February 2022, the Receiver for CV Investments LLC was
successful in getting the United States District Court, for the
District of New Jersey, to enter an Order Establishing Claims
Procedure and Setting Claims with a Bar Date of 25 April 2022. This
will involve the Company's wholly owned subsidiary, Southern
Minerals Group ("SMG"), lodging a claim for US$21.9m as per its
recent arbitration. This development is encouraging and may
indicate some sort of financial result for SMG before the end of
the year, although there is no guarantee as to timing or
amount.
Commenting, John Peters, Managing Director of Strategic
Minerals, said:
"While not unexpected, the rollover of access at Cobre is always
an important milestone in SML's calendar. Given our close
relationship with the mine owner, the rollover was expected and the
Board and Management do not currently foresee any problems with
future rollovers.
"It is pleasing to see that the CV Investments' receivership is
moving forward and the Company anticipates, but is not relying
upon, a cash settlement arising from the closure of this
matter.
"Recent significant rises in the copper price, to over
US$4.50/lb, have continued to heighten interest in our Leigh Creek
Copper Mine project and we look forward to it joining Cobre this
year as a second income stream for the Company, subject to securing
the necessary funding. "
For further information, please contact:
+61 (0) 414 727
Strategic Minerals plc 965
John Peters
Managing Director
Website: www.strategicminerals.net
Email: info@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
+44 (0) 20 3470
SP Angel Corporate Finance LLP 0470
Nominated Adviser and Broker
Matthew Johnson
Ewan Leggat
Charlie Bouverat
Notes to Editors
Strategic Minerals plc is an AIM-quoted, profitable operating
minerals company actively developing projects tailored to materials
expected to benefit from strong demand in the future. It has an
operation in the United States of America 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 likely to be highly demanded in the future.
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 aimed at supplying the
metals and minerals likely to be highly demanded in the future.
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 2019, the Company entered into arrangements to acquire the
balance of the Redmoor Tin/Tungsten project which was settled on 24
July 2019 by way of a vendor loan which was fully repaid on 26 June
2020.
In March 2018, the Company completed the acquisition of the
Leigh Creek Copper Mine situated in the copper rich belt of South
Austra lia and brought the project temporarily into production in
April 2019. In July 2021, the project was granted a conditional
approval by the South Australian Government for a Program for
Environmental Protection and Rehabilitation (PEPR) in relation to
mining of its Paltridge North deposit and processing at the
Mountain of Light installation. In early January 2022, an updated
PEPR, addressing the conditions associated with the July 2021
approval, was lodged.
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