Result of AGM

RNS Number : 0556S

Strategic Minerals PLC

02 July 2015

 

2 July 2015

Strategic Minerals plc

("Strategic Minerals" or the "Company")

Result of AGM

Strategic Minerals plc (AIM: SML; USOTC: SMCDY), the diversified mineral development and production company, is pleased to announce that at the Annual General Meeting ("AGM") held earlier today, other than resolution 3, all resolutions were passed.  Resolution 3 concerned the re-election of Michael Wong and was not put to shareholders because, as previously announced, Michael Wong did not offer himself for re-election as a director of the Company due to his increased workload with his investment banking business.

At the meeting John Peters, Managing Director, made the following statement:

"Unfortunately we believe the statement made earlier today has been misinterpreted and I would like to reaffirm to all shareholders the current position of the Company, which the Board and I feel is highly encouraging and positive.

"As stated in our very recent final results, the Board had to review the Cobre operations after it was hit by the falling iron ore price. As a result, Cobre completed its final export of product in February 2014 and is now focused on the domestic market. We were delighted to announce in our results that domestic sales were up by 25% and it is still a cash producing project for the Company.

"Further to this, the Board has made strides in reducing operational costs at the site as well as within the operational structure of the Company, thereby creating a leaner, base of which we could build upon positively for the future of the business.

"Since then, your Company made significant headway. Following my appointment in January 2015, we redefined the strategy to focus on small sized projects that provide near term cash flows and focus on local markets which we believe is the best way to provide value to our shareholders.

"We have rapidly progressed this strategy and in March announced the conditional acquisition of the Tatu Coal Project in New Zealand. We have since announced that the project has a JORC estimate of 6.72 Mt of measured and indicated thermal coal and our aim to provide first thermal coal sales in the first half of 2016 is on track.

"This month, we announced the successful raising of £1 million before expenses through a placing to fund the development of the project and complete the acquisition. The expected future cash flows from this project, once operational, combined with the existing Cobre asset will support the long-term sustainability of Strategic Minerals and our objective to be a profitable mining company.

"We have also announced to the market that we entered into a Memorandum of Understanding with the owners of Wanbao Metallurgical Coal Mine in China to assess the underlying resource. This is once again a positive development for the Company as we identify and progress potential opportunities that offer small sized, near term cash flow projects that are domestic facing.

"Finally, earlier this week, we announced the appointment of Alan Broome as Chairman. Alan is a real coup for us. Not only does he bring with him broad mining experience but also has an in depth understanding of the New Zealand coal market. He will be key in our successful progression of the Tatu Mine Coal Project.

"I hope that that clarifies the current position of the Company.  We are progressing well with our strategy and now have a well-balanced, strong and reliable Board to bring our aims into fruition. We have some exciting projects on the horizon and believe that 2015 will be a positive year for the Company."

Please note that an updated Corporate Presentation is now available to view on the website: www.strategicminerals.net. 

For further information, please contact:

Strategic Minerals plc John Peters Managing Director	[phone]
Allenby Capital Limited Nominated Adviser and Joint Broker Jeremy Porter James Reeve	[phone]
Cornhill Capital Limited Joint Broker James Sheehan Colin Rowbury	[phone]
Yellow Jersey PR Financial PR Dominic Barretto Kelsey Traynor	[phone]

Notes to Editors

Strategic Minerals plc is an AIM quoted, diversified mineral development and production company, with projects in the United States of America and New Zealand. The Company is focused on acquiring and developing cash generative, high quality projects which meet local market demand for commodities. 

In September 2011, the Strategic Minerals purchased, its first cash generating asset, the Cobre magnetite tailings dam project in New Mexico, USA which it brought into production in 2012 and which continues to provide a revenue stream for the Company. The portfolio was expanded in March 2015 with the acquisition of the Tatu Coal Mine located in North Island, New Zealand. Strategic Minerals is now developing this project with the expectation it will make its first thermal coal sales by H1 2016.

 

END

 

 

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