Strategic Minerals Shares Down on $10 Million Loan Negotiations Ending
23 Diciembre 2021 - 3:35AM
Noticias Dow Jones
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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