TIDMSML
RNS Number : 8023I
Strategic Minerals PLC
21 April 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.
21 April 2022
Strategic Minerals plc
("Strategic Minerals", "SML" or the "Company")
Redmoor Update
10 Year Exploration Licence Extension
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a profitable
producing mineral company, is pleased to announce that its 100%
owned subsidiary Cornwall Resources Limited ("CRL") has signed a
10-year extension to its existing Redmoor exploration licence
agreement.
Highlights:
-- Redmoor Exploration Licence extended to 2037
-- 25-year Mining Lease option confirmed
-- General Permitted Development Order ("GPDO") application in progress
-- Recent commodity price increases likely to result in further
upside to project's internally estimated US $163m NPV (8%) despite
general increases in mining costs
The Redmoor exploration licence which provides the rights to
explore over the entire licence area was due to expire in 2027,
this has now been extended to a new end date of 18 October 2037.
There remains a mining lease option which provides the right for
CRL to enter into a 25-year mining lease (renewable for a further
25 years) over any part of the licence area. During the exploration
licence period, a modest annual licence fee is payable to the
vendor which converts to a 3% net smelter return vendor royalty on
mining commencement.
The original exploration licence was entered into by New Age
Exploration Limited in October 2012, whereby the rights were
acquired via an exploration licence and mining lease option
arrangement, over a 23km(2) area surrounding the Redmoor deposit in
East Cornwall.
CRL's most recent updated inferred mineral resource was produced
by Cornwall based consultants Geologica (UK) and totals 11.7 mt @
0.56% WO3, 0.16% Sn, and 0.50% Cu.
A GPDO application is currently in progress; seeking approval to
conduct a focused drilling programme which will target new tin
prospects in the Redmoor West area. The earlier trenching work, in
this area, has indicated potential near surface tin deposits which
could be likely to accelerate mining commencement.
With tin, tungsten and copper prices all significantly higher
than those utilised in the Company's update on the project's
projected economics (21 November 2021), the Directors believe that
the project after tax NPV at 8% pa is expected to further increase
from the US $163m previously reported. This is despite an expected
increase in mining costs since this time.
Commenting, Peter Wale, Executive Director of Strategic Minerals
and Director of CRL, said :
"We are pleased to have extended the original exploration
licence by an additional 10 years. This secures our footprint in
the region and adds long term confidence to the tenure of the
Redmoor project, which comes at a time when Cornish assets are
starting to attract ever greater interest and rising
valuations.
"Tin continues to attract wider coverage both within and beyond
the mining community and this has been reflected in the substantial
tin price appreciation since SML took full ownership of the
project. On top of that, tungsten is also quietly edging up and is
now approaching 8-year highs. There has been significant US oil and
gas industry demand for tungsten.
"The evolving Critical Minerals agenda is also seeing companies
consider more carefully where they are sourcing materials.
Heightened concerns on critical mineral supply in the US have also
resulted in the Defense Production Act being invoked to increase
domestic production of minerals used in both the EV space and the
wider clean energy economy. Last month Canadian miners secured a
total of C$3.8 billion in potential government funding to develop
critical minerals necessary for electric vehicles and other
technologies. We look forward to the UK Government taking a similar
stance."
For further information, please contact:
+61 (0) 414
Strategic Minerals plc 727 965
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:
Strategic Minerals plc is an AIM-quoted, profitable operating
minerals company. It has operations in the United States of America
and Australia along with a development project in the UK. 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 the Board considers likely to
benefit from future supply and demand factors.
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 progressing the Company's development
projects.
In May 2016, the Company entered into an agreement with New Age
Exploration Limited and, in February 2017, acquired 50% of the
Redmoor Tin and Tungsten project in Cornwall, UK. The bulk of the
funds from the Company's investment were utilised to complete an
initial drilling programme that year. This programme resulted in a
significant upgrade of the resource. This was followed in 2018 with
a 12-hole drilling programme which resulted in the resource update
announced in February 2019. In March 2019, the Company entered into
arrangements to acquire the balance of the Redmoor Tin and 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
Australia and brought the project into production in April
2019.
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