TIDMSML
RNS Number : 6532X
Strategic Minerals PLC
01 September 2020
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.
1 September 2020
Strategic Minerals plc
("Strategic Minerals" or the "Company")
Leigh Creek Copper Mine Project Update
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a producing
mineral company actively developing projects prospective for
battery materials , announces that the planned lodgement by Leigh
Creek Copper Mine ("LCCM") of updated information to accompany the
draft Program for Environment Protection and Rehabilitation
("PEPR") with the South Australian government has been delayed by a
few weeks so as to upgrade the submission to a full PEPR
application.
Previously, the Board had reported that it expected to provide
updated requested information to the South Australian government in
a draft form by the end of August. However, after reviewing the
information provided, and in consultation with the relevant
government department it was decided to delay a few weeks and lodge
the information as a full PEPR application. The Company's
consultants have recommended this approach and the Company was
encouraged as it opens the way for a PEPR approval before the end
of the year, subject to internal South Australian government
processes.
During the Company's current endeavours to secure project level
funding for LCCM, it received feedback from potential investors in
relation to its feasibility study analysis and, in particular, a
request to update the likely capital cost of developing the
Lynda/Lorna Doone deposit, scheduled to commence during the third
year of operations. The Lynda/Lorna Doone deposit is located
approximately 70km north of the Paltridge North deposit and was
included in the feasibility study announced in November 2019. The
proposed funding of the development of Lynda/Lorna Doone is
intended to be sourced out of project cash flows.
The Company is currently organising an independent third party,
familiar with this operation, to provide the update on the likely
capital cost of developing Lynda/Lorna Doone. Additionally, the
Company has taken the opportunity to, in light of its operating
experience, fine tune some of the key assumption variables of the
feasibility study, which are focused on further enhanced expected
profitability. LCCM is also assessing the use of a mini Solvent
Extraction Electronic Winning (SX-EW) plant process at site which
has the potential to produce LME grade copper cathode for direct to
market sale.
Whilst copper prices exhibited a significant downturn during the
first half of 2020, prices have recovered substantially to above
pre-covid levels and are currently higher than US$3.00/lb which is
a 2 year high.
It is the intention of the Board to provide the market an update
on the financial analysis shortly after receiving the capital cost
review.
Commenting, John Peters, Managing Director of Strategic
Minerals, said:
"The Company continues to move the Leigh Creek Copper Mine
forward with an expectation of operations commencing early 2021,
subject to finance. This is likely to lead to significant cash
flows during 2021.
At the same time, the Company is actively seeking funding to
enable the early 2021 commencement of production and continues to
review the planned operations to maximise returns from the project.
"
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
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
Charlie Bouverat
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 2019, the Company entered into arrangements to acquire the
balance of the Redmoor Tin/Tungsten project. This was completed on
24 July 2019.
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 temporarily brought the project into production in
April 2019. Recommencement of full scale processing is expected in
2021.
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