By Anthony O. Goriainoff

 

Shares in Strategic Minerals PLC fell Thursday after the company said the negotiations on the provision of an at least $10 million loan facility aimed at the Leigh Creek copper mine, or LCCM, in Australia had ended.

Shares at 0846 GMT were down 0.13 pence, or 36%, at 0.23 pence.

The AIM-listed mining company said it is seeking $10 million by either a convertible note or equity investment. It said it plans to apply such funding to restart production at the project and for exploration costs.

"Whilst it was felt that funding on a pure debt basis would have produced the best result for our shareholders, the market was not prepared to debt fund the project at this time. Accordingly, discussions involving equity linked funding, at the LCCM level, have now commenced and considerable interest has been received to date," the company said.

Strategic Minerals said negotiations ended because of the high costs of a large approved undrawn facility and the company's current low market capitalization.

In October, the company said that it was in talks with a top global bank and that there was no guarantee that a loan would be offered.

 

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

 

(END) Dow Jones Newswires

December 23, 2021 04:20 ET (09:20 GMT)

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