Strategic Minerals PLC (AIM: SML) has secured a further two-year extension to its access arrangements for the Cobre magnetite stockpile in New Mexico, extending an important source of internal cash flow through to 31 March 2031.
Highlights
- Cobre magnetite access extended by two years
- Contract now runs to 31 March 2031
- Previous expiry date was March 2029
- All other contractual terms remain unchanged
- Extension supports continued investment in Cobre operations
- Cobre remains an important source of internal cash flow
- Cash generation helps fund advancement of Redmoor in Cornwall
Wholly owned subsidiary Southern Minerals Group agreed the extension through a Third Amendment to the existing Magnetite Sales Contract.
The previous agreement had been due to expire in March 2029, while all other contractual terms remain unchanged.
The additional tenure provides greater certainty around continued operations at Cobre and supports Strategic Minerals’ previously announced plans to invest in new mining equipment.
Cobre has been in production since 2012 and has continued to generate revenue for the group.
Executive director Mark Burnett said the extension provides further certainty over an important source of internally generated cash, helping support operating costs and the continued advancement of the company’s flagship Redmoor tungsten-tin-copper project in Cornwall.
