TIDMSML
RNS Number : 1524G
Strategic Minerals PLC
28 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.
28 March 2022
Strategic Minerals plc
("Strategic Minerals" or the "Company")
Cobre Access Extended Until 31 March 2027
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a profitable,
producing mineral company is pleased to inform the market of the
successful extension of its access to the magnetite stockpile in
New Mexico from the recently announced rollover to 31 March 2023
until 31 March 2027.
Cobre Update
From 2017, Clovis Hooper, the President of the Company's 100%
owned subsidiary Southern Minerals Group LLC ("SMG"), and John
Peters, Strategic Minerals plc's Managing Director, have repeatedly
sought an exclusive, longer-term extension of access to the
magnetite stockpile at Cobre. The certainty of access from an
exclusive extension is desirable to SMG and the Company, as it not
only provides long term cash flow for both but establishes a
framework in which SMG can more aggressively seek additional sales,
through its ability to provide long term certainty of supply.
Until now, the stockpile owner had been reticent to provide
longer term access to allow for the possibility of reorganising its
mining activities, conducted nearby the stockpile. However, the
good will built up during the ten years of operations, combined
with the impeccable work undertaken by the SMG team, ensuring
contactless and safe operations throughout the pandemic, have
resulted in this milestone extension.
Given that, historically, March and early April are the busiest
times for operations at Cobre, a concerted marketing program is
being planned for May of this year.
Sales at Cobre have recovered to previous levels after the dip
experienced from October 2021 through to January 2022. The
combination of the extension of access and the planned marketing
programme is expected to reflect in sales growth in the second half
of the year.
CV Investments LLC
In line with the court order obtained by the Receiver for CV
Investments LLC on 22 February 2022, SMG expects to formally lodge
its claim for US$21.9m, as per its recent arbitration, within the
next two weeks, well ahead of the Bar Date of 25 April 2022.
Management and the Board anticipate this may produce a 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 a long time in coming to fruition, the extension of
access at Cobre to 31 March 2027 is a huge achievement by the
excellent team at Cobre and especially by its President Clovis
Hooper.
"This extension should underpin the Company's future
profitability and provides scope to broaden Cobre's clientele,
which is expected to lead to higher sales in the future. "
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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