Leigh Creek Copper Mine Conditions Precedent Met
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.
27 February 2018
Strategic Minerals plc
("Strategic Minerals", "SML" or the "Company")
Leigh Creek Copper Mine Conditions Precedent Met
Acquisition Moves to Settlement
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), the diversified mineral development and production company, is pleased to announce that, further to its announcement on 25 January 2018, all conditions precedent, including the Foreign Investment Review Board approval, have now been met and the acquisition of the Leigh Creek Copper Mine ("LCCM") is to be settled within 5 business days. The acquisition involves the payment of AUD 1,500,000 (approx. GBP 850,000) and the subsequent issue of SML shares valued at AUD 1,450,000 based on the volume weighted average share price throughout the month of March. These shares are subject to dealing restrictions, with one third being locked-up for three months after issue, and another third being locked-up for six months after issue.
Highlights
· All conditions precedent associated with the contract for the purchase of the Leigh Creek Copper Mine have been met
· Final settlement required within the next five business days
· 24,900 tonnes of JORC compliant resource copper metal acquired at less than USD 100 per tonne of contained copper
· Offtake Agreement in place for 100 per cent of copper production
· Production rate of over 200 tonnes of copper per month expected to be reached in approximately one year
· Strategic review of development options commenced, opportunities identified to increase metal recoveries and optimise cash flows
A copy of the Company's presentation on the Leigh Creek Copper Mine has been added to the Strategic Minerals website and may be viewed at:
http://www.strategicminerals.net/files/201802_Strategic_Minerals_Presentation_LCCM.pdf
Managing Director of Strategic Minerals, Mr John Peters, commented:
"The achievement of all conditions precedent, as expected, advances the acquisition of Leigh Creek Copper Mine to the final stage and the Board eagerly awaits the settlement of this acquisition next week.
"Recent discussions with the London investment community have been positive, and many existing and potential new investors have indicated that they are encouraged by the successful restart of the LCCM. We believe that we will resume copper production in approximately one year.
"Once production commences and SML has a second line of cash flow, we will be in a significantly stronger position to consider cash management alternatives, which includes dividend payment as well as continuing our strategy of acquiring value accretive projects.
"The LCCM is an attractive low-cost project containing significant quantities of copper. The site has excellent infrastructure in place and we look forward to resuming production and generating further shareholder value."
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 exploration, development and production company with projects in the United States of America, United Kingdom 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. Cobre continues to provide a significant revenue stream for the Company. The portfolio was expanded in January 2016 with the acquisition of shares in Central Australian Rare Earths Pty Ltd ('CARE'), which holds high quality exploration tenements in Western Australia that are prospective for cobalt, nickel sulphides, gold and rare earth elements. The Company has since acquired all shares in Central Australian Rare Earths Pty Ltd. In May 2016, an additional advanced exploration project was acquired when the Company entered into a 'farm in' 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 was completed in November 2017. Redmoor is currently advancing a scoping study evaluation. The Company has also exchanged contracts for the acquisition of the Leigh Creek Copper Mine ('LCCM'), situated in the copper rich belt of South Australia, which has now met all its Conditions Precedent and will proceed to acquisition.
This information is provided by RNS
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