Cobre Magnetite Stockpile Access Extended
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
9 February 2018
Strategic Minerals plc
("Strategic Minerals" or the "Company" or "SML")
Cobre Magnetite Stockpile Access Extended
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), the diversified mineral development and production company, is pleased to announce that the Company's access to the Cobre magnetite stockpile in New Mexico, USA has been extended to 31 March 2019.
Southern Minerals Group ("SMG"), the wholly owned subsidiary of the Company, has an existing contract with the owner of the Cobre Mine for access to the magnetite stockpile, which is subject to an annual extension. SMG has received confirmation from the Cobre Mine owner that the existing contract will roll over providing guaranteed access until 31 March 2019. In line with the contract, an automatic one-year extension will occur should the owner, prior to 28 February 2019, fail to notify SMG, in writing, of its intention to terminate the contract.
Commenting, John Peters, Managing Director of Strategic Minerals, said:
"We are delighted to have our access at Cobre extended until April 2019 considering our expectation that the strong sales achieved in 2017 will continue this year. We have a good working relationship with the mine owner and, on this basis, it would suggest that the contract will ultimately continue to rollover until the entire stockpile is removed.
The expected Cobre sales and existing cash balances place the Company in a strong position from which we hope to be able to internally fund exploration programmes at Hanns Camp/Mount Weld and Redmoor and provide capital to restart the Leigh Creek Copper Mine operations.
The Board believes that the contract extension augurs well for another important year for the Company."
For further information, please contact:
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Strategic Minerals plc |
+61 (0) 414 727 965 |
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John Peters |
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Managing Director |
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Notes to Editors
Strategic Minerals Plc is an AIM-quoted, diversified mineral development and production company with projects in the United States of America, the UK and Australia. The Company is focused on acquiring and developing cash generative, high quality projects which meet local market demand for commodities and utilising this cash flow to undertake value added exploration.
In September 2011, 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 January 2016 with the acquisition of shares in Central Australian Rare Earths Pty Ltd, which holds tenements in Western Australia that are prospective for cobalt, gold, nickel sulphides and rare earth elements. The Company has since acquired all shares in Central Australian Rare Earths Pty Ltd. In May 2016, an additional exploration asset was acquired when the Company entered into an agreement with New Age Exploration Limited to acquire up to 50% of the Redmoor Tin/Tungsten project in Cornwall, UK. This 50% acquisition was completed in February 2017 and the first drilling programme at the project has been completed. The Company has also exchanged contracts for the acquisition of the Leigh Creek Copper Mine, situated in the copper rich belt of South Australia, which is subject to Conditions Precedent.
This information is provided by RNS
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