TIDMSML
RNS Number : 6761Q
Strategic Minerals PLC
29 June 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.
29 June 2022
Strategic Minerals plc
("Strategic Minerals" or the "Company")
PEPR Approved
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a profitable
producing mineral company, is pleased to announce that it has
received approval for the planned mining activities of its wholly
owned subsidiary. Leigh Creek Copper Mine ("LCCM"), accessing the
Paltridge North ("PN") deposit to be processed at the nearby
Mountain of Light ("MoL") plant.
Highlights
-- PEPR approval ensures LCCM now "shovel ready", subject to finance
-- Approval relates to the processing of copper oxide
-- Rehabilitation Financial Assurance reduced by approximately AUD 800,000 to AUD 2,890,000
-- Native Vegetation Fund contribution increased by approximately AUD 50,000 to AUD 139,035
-- Requirement, as anticipated, to provide monitoring reports
and to observe identified areas of historical significance to
indigenous communities.
LCCM has received notification from the South Australian
Department of Energy and Mining ("DEM") under the Mining Act 1971
of approval of the Program for Environment Protection and
Rehabilitation for Mineral Lease (ML) 5467 - Mountain of Light
Copper Mine.
The approval is in line with expectations and relates to the
mining and processing of copper oxide from LCCM's PN deposit. From
LCCM's previous drilling results, the PN deposit appears to have a
layer of waste material that needs to be removed (approximately 6
weeks mining) followed by a layer of copper oxide material and then
descending into transitional sulphide ore. It is anticipated that
it will be over 12 months after mining commences before the
transitional ore is reached.
LCCM is confident that, by the time the transitional ore is
reached, LCCM will have submitted, and had approved by DEM,
procedures for extracting and processing the transitional ore. This
is because the submission will largely consist of the existing PEPR
documentation with minor variations in relation to the extraction
and handling of the transitional sulphide ores. Work on the
submission has commenced.
As part of the negotiations with DEM in relation to the original
conditional PEPR issued in July 2021, LCCM were able to reduce the
rehabilitation bond by approximately AUD 800,000 from AUD 3,700,000
to AUD 2,890,000 reflecting reasoned proposals from the Company's
mine manager John Speck. As LCCM currently has a AUD 200,000
deposit with DEM, this represents a net funding requirement of AUD
2,690,000.
While reviewing further information supplied by LCCM in relation
to the conditional requirements, DEM have increased the required
contribution to the Native Vegetation Fund from AUD 81,398.52 to
AUD 139,035.
Also associated with the approval are a number of, expected,
reporting requirements and observation of identified indigenous
sacred sites.
Commenting, John Peters, Managing Director of Strategic
Minerals, said:
"The approval, while having taken longer due to a number of
factors, is welcomed, anticipated news. This provides a focal point
by which to progress discussions currently underway with potential
funders/joint venture partners.
"With regard to funding of the LCCM project, the Company has had
numerous parties review the project and, currently, has three
interested parties who have signed the Company's Confidentiality
Agreement and have been in our data room for a month or more. These
parties reflect a European based, mining focused fund, a large,
respected, global copper supplier with activities in South
Australia and the equity investment and debt funding arms of a
major Australian, internationally recognised bank.
"While recent declines in the copper price, associated with
fears of global recession, have impacted the forecasted
profitability of the project, the associated drop in the Australian
Dollar/US Dollar exchange rate has partially offset the impact on
profitability ensuring that the project remains an extremely
attractive one from an investors perspective."
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
SP Angel Corporate Finance LLP 3470 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
Australia 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.
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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCBKCBPBBKDAAB
(END) Dow Jones Newswires
June 29, 2022 08:57 ET (12:57 GMT)
Strategic Minerals (LSE:SML)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Strategic Minerals (LSE:SML)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
