Strategic Minerals PLC Cobre Sales Contract Update (1545M)
April 26 2018 - 2:00AM
UK Regulatory
TIDMSML
RNS Number : 1545M
Strategic Minerals PLC
26 April 2018
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.
26 April 2018
Strategic Minerals plc
("Strategic Minerals" or the "Company")
Cobre Sales Contract 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"), operator of
SML's Cobre magnetite stockpile in New Mexico, USA ("Cobre"), has
agreed to a temporary (three month) suspension to the minimum
tonnage requirement under its contract disclosed on 20 April 2017.
The minimum tonnage requirement is 4,000 tons of magnetite per
month.
SMG's client has indicated that it is awaiting an environmental
planning approval which has taken longer than expected and has
requested that the minimum tonnage requirement be suspended for
March, April and May of 2018. Given the substantial importance of
this client to SMG, having already taken and paid for circa 40,000
tons of magnetite, SMG has agreed to such a temporary suspension of
this aspect of its contract.
It should be noted that this does not change, in any manner, the
underlying contract with the client, which has a requirement to
purchase a further circa 360,000 tons and will, after May, continue
to have a minimum purchase requirement of 4,000 tons per month. SMG
reports that the client is currently within its payment
arrangements with SMG and has, in escrow, a US $250,000 deposit
securing its contract.
Commenting, John Peters, Managing Director of Strategic
Minerals, said:
"The temporary suspension of the minimum shipment requirement
demonstrates the close working relationship that Strategic Minerals
and Southern Minerals Group have with our long-term clients. This
decision has been made to maximise the outcome for both parties,
without detriment to the Company.
"Last quarter's figures did not include any suspended sales,
demonstrating that, even without these sales, both SMG and the
Company as a whole are profitable.
"Having dealt with similar environmental approval processes
before, the Company is understanding of the situation and looks
forward to resumption of normal shipments in June."
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
+44 (0)20 3470
SP Angel Corporate Finance LLP 0470
Nominated Adviser and Broker
Ewan Leggat
Laura Harrison
+44 (0)20 3735
Yellow Jersey PR 8825
Financial PR
+44 (0)7747 788
Charles Goodwin 221
+44 (0)7769 325
Joe Burgess 254
+44 (0)7951 402
Henry Wilkinson 336
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
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 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 and the Northern Territory that are
prospective for cobalt, gold, nickel sulphides and rare earth
elements. The Company has since acquired all shares in Central
Australian Rare Earths Pty Ltd.
In May 2016, an additional exploration asset was acquired when
the Company entered into an agreement with New Age Exploration
Limited to acquire up to 50% of the Redmoor Tin/Tungsten project in
Cornwall, UK. This 50% acquisition was completed in February 2017
and a drilling programme completed in 2017 resulted in a
significant upgrade of the resource.
In March 2018, the Company completed the acquisition of the
Leigh Creek Copper Mine situated in the copper rich belt of South
Australia and is currently working to bring this into operation in
2019.
This information is provided by RNS
The company news service from the London Stock Exchange
END
CNTBCGDSXXDBGIU
(END) Dow Jones Newswires
April 26, 2018 02:00 ET (06:00 GMT)
Strategic Minerals (LSE:SML)
Historical Stock Chart
From Apr 2024 to May 2024
Strategic Minerals (LSE:SML)
Historical Stock Chart
From May 2023 to May 2024