Strategic Minerals PLC Temporary Amendment to Cobre Sales Contract (7001Q)
June 07 2018 - 10:06AM
UK Regulatory
TIDMSML
RNS Number : 7001Q
Strategic Minerals PLC
07 June 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.
7 June 2018
Strategic Minerals plc
("Strategic Minerals" or the "Company")
Temporary Amendment to Cobre Sales Contract
Ensures minimum payment of $1.125m over nine months
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a producing
mineral company actively developing projects prospective for
battery materials, announces that it has, in conjunction with its
subsidiary Southern Minerals Group ("SMG"), amended its contract
(the "Contract") with SMG's major client (the "Client") at the
Cobre magnetite stockpile in New Mexico, USA. The amended Contract
provides the Client sufficient time to put in place the necessary
environmental approvals and operating procedures to resume the
offtake of magnetite material, while at the same time ensuring that
SMG is in a similar after-tax cash position as per the previous
contract.
SMG has agreed the following arrangements in relation to the
Contract:
-- The Client is to pay, quarterly in advance, a non-refundable
prepayment of US $375,000 against future deliveries (payments are
due in June, September and December 2018)
-- The minimum 4,000 tons per month sales requirement, currently
stipulated in the Contract, will be suspended until 1 March 2019,
offset by the US $375,000 quarterly prepayment
-- A maximum of US $125,000 can be applied to sales in any month
provided a minimum of 4,000 tons is taken during that month
-- Should the material not be collected by the Client within 12
months from the prepayment invoice date any prepayment amount,
relating to this invoice, will be forfeited
Commenting, John Peters, Managing Director of Strategic
Minerals, said:
"We consider this arrangement to be mutually beneficial for both
the Company and our Client. The amendments to the Contract have
been agreed to support our Client whilst it seeks the necessary
approvals. This will reduce the impact on their cash flow, and
ensure that, from a cash perspective, the SML group will be
unaffected.
"The underwriting of these cash flows reinforces our
expectations that we will be in a position to internally fund
current exploration and development programmes across SML's
portfolio of projects."
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 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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