John Peters, Managing Director of Strategic Minerals, commented: SMG has now received written confirmation of the major client’s intent to make payment of over US $4m in the next two weeks which would place the SML group in an attractive position to advance its various projects.
“The Company will keep the market fully informed of further developments and of the receipt of funds.”
Cobre Client Update
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a producing mineral company actively developing projects prospective for battery materials, wishes to inform the market that its wholly owned subsidiary, Southern Minerals Group (“SMG”), has reached an agreement with its major client at Cobre in relation to arrears to date and payments going forward.
The major client has informed SMG that it anticipates having significant funds very shortly and has asked SMG to refrain from progressing legal action for two weeks. During this two week period, the major client has agreed to pay arrears of US $375,000 and top up the existing deposit, held by SMG, by US $3,690,000. The major client has indicated that it wishes to negotiate the balance of the contract during June and has agreed to the increase in the deposit amount to reflect its good faith in this regard.
· Potential receipt of US $4,065,000 within two weeks
· Intention to clarify contract in June 2019
Strategic Minerals Plc is an AIM-quoted, operating minerals company actively developing projects prospective for battery materials. It has an operation in the United States of America and Australia along with development projects in the UK and Australia. The Company is focused on utilising its operating cash flows, along with capital raisings, to develop high quality projects aimed at supplying the metals and minerals being sought in the burgeoning electric vehicle/battery market.
In September 2011, Strategic Minerals acquired the distribution rights to the Cobre magnetite tailings dam project in New Mexico, USA, a cash-generating asset, which it brought into production in 2012 and which continues to provide a revenue stream for the Company. This operating revenue stream is utilised to cover company overheads and invest in development projects orientated to supplying the burgeoning electric vehicle/battery market.
In January 2016, the portfolio was expanded with the acquisition of shares in Central Australian Rare Earths Pty Ltd, which holds tenements in Western Australia prospective for cobalt, nickel sulphides and rare earth elements. The Company has since acquired all shares in Central Australian Rare Earths Pty Ltd. In September 2018, the Company entered contracts for the sale of certain CARE tenements identified as gold targets.
In May 2016, the Company entered into an agreement with New Age Exploration Limited and, in February 2017, acquired 50% of the Redmoor Tin/Tungsten project in Cornwall, UK. The bulk of the funds from the Company’s investment were utilised to complete a drilling programme that year. The drilling programme resulted in a significant upgrade of the resource. This was followed in 2018 with a 12-hole 2018 drilling programme has now been completed and the resource update that resulted was announced in February 2019.
In March 2018, the Company completed the acquisition of the Leigh Creek Copper Mine situated in the copper rich belt of South Australia and brought the project into production in April 2019.
The Company, in March 2019, entered into arrangements to acquire the balance of the Redmoor Tin/Tungsten project in Cornwall, UK.
All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned