Strategic Minerals plc (AIM: SML; USOTC: SMCDF) has completed the sale of its Leigh Creek Copper Mine in South Australia to Cuprum Metals following regulatory approval, securing A$750,000 in cash alongside potential future equity, royalty and earn-out payments to support development of its flagship Redmoor Tungsten-Copper-Tin Project in Cornwall.
The company confirmed that Australian Foreign Investment Review Board (FIRB) approval has been received, allowing the transaction with South Pacific Minerals Investments Pty Ltd, trading as Cuprum Metals, to close.
The sale provides Strategic Minerals with A$750,000 in total cash consideration, including A$500,000 previously held in escrow, which has now been released to the company.
The agreement also allows Strategic Minerals to retain exposure to the potential future commercial success of Leigh Creek through a combination of equity participation, production royalties and performance-related payments.
Strategic Minerals could receive up to 19.9% of the shares in a new company that Cuprum intends to list on a recognised stock exchange, with the equity consideration capped at A$3 million.
If the shares are not issued within three years, or their value falls short of A$3 million under the agreed terms, the shortfall will be added to the transaction’s earn-out arrangements.
The company will also receive a 2% net smelter royalty on the first 24,900 tonnes of copper produced at Leigh Creek, providing potential income linked to future production.
Cuprum has the option to buy back one percentage point of the royalty for A$1.5 million, which would reduce Strategic Minerals’ royalty entitlement to 1%.
In addition, Strategic Minerals is entitled to 20% of Leigh Creek’s half-yearly operating cash flows from the commencement of commercial production, subject to a cumulative earn-out ceiling of A$4 million, including any applicable adjustments under the equity consideration provisions.
These arrangements allow Strategic Minerals to benefit from future progress at Leigh Creek without retaining direct operational responsibility for developing the mine.
The proceeds will be directed towards advancing the Redmoor Tungsten-Copper-Tin Project in southeast Cornwall, which remains the company’s principal development priority.
Redmoor provides Strategic Minerals with exposure to tungsten, copper and tin, metals used in industrial manufacturing, electrical infrastructure and strategic supply chains.
Executive Chairman Charles Manners welcomed completion of the transaction, highlighting the benefits of retaining an economic interest in Leigh Creek while redirecting resources towards Redmoor.
He said the combination of immediate cash proceeds and potential future payments could help accelerate activities at the Cornish project.
Manners also expressed confidence in Leigh Creek’s prospects under Cuprum’s ownership, particularly given the importance of copper to global electrification and infrastructure development.
Cuprum Director Matthew Salthouse said the company was pleased to complete the acquisition and intended to work towards restarting the Leigh Creek mine.
He also welcomed Strategic Minerals’ continuing participation through the transaction’s retained financial interests.
For investors, completion of the sale represents a portfolio restructuring milestone, providing immediate cash while preserving potential upside from future copper production.
However, the equity consideration, royalty income and earn-out payments are conditional on future developments, including Cuprum’s proposed listing, successful mine redevelopment and the commencement of commercial production.
The A$750,000 cash consideration is therefore the confirmed element of the transaction, while the value and timing of additional proceeds remain uncertain.
Attention will now turn to Strategic Minerals’ progress at Redmoor and Cuprum’s plans to restart Leigh Creek, as the company focuses its development activities on Cornwall while retaining exposure to future copper production in Australia.
