Strategic Minerals PLC Substantial New Client at Cobre (2835Z)
13 March 2017 - 10:58PM
UK Regulatory
TIDMSML
RNS Number : 2835Z
Strategic Minerals PLC
13 March 2017
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.
13 March 2017
Strategic Minerals plc
("Strategic Minerals" or the "Company" or "SML")
Substantial New Client at Cobre
Strategic Minerals PLC (AIM: SML; USOTC; SMCDY), the diversified
mineral production and development company, is pleased to announce
that its subsidiary Southern Minerals Group ("SMG"), the operator
of the Cobre magnetite stockpile, signed a contract on Friday 10
March with a private company, Galvin Investment Company ("GIC") for
the sale of up to 350,000 tons of magnetite at a market based price
over several years, subject to availability. Before the contract
becomes effective, GIC must provide a US $100,000 Letter of Credit
from an acceptable bank. The contract calls for a minimum purchase
of 2,000 tons per month and logistics at the mine site would result
in a maximum supply, above existing client demand, of 6,000 tons
per month. This would effectively double annual sales from Cobre,
which is likely to be achieved without affecting SMG's effective
net profit margin of between 40% to 45% of sales revenue. The
contract will terminate if, at any time, SMG loses access to the
magnetite stockpile.
Commenting, John Peters, Managing Director of Strategic
Minerals, said:
"While we are delighted with the prospect of undertaking this
contract with Galvin Investment Company, the Board wishes to
emphasise the need to temper expectations and for caution to be
applied until the security Letter of Credit is provided and sales
commence. This process may take up to 30 days before the contract
would effectively commence. We will update the market as soon as
the contract comes into effect."
For further information, please contact:
Strategic Minerals plc
John Peters
Managing Director
www.strategicminerals.net
Follow Strategic Minerals on:
Twitter: @SML_Minerals
LinkedIn: www.linkedin.com/company/strategic-minerals-plc +61 (0) 414 727 965
SP Angel Corporate Finance LLP
Nominated Adviser and Joint
Broker
Ewan Leggat
Laura Harrison +44 (0)20 3470 0470
Optiva Securities Limited
Joint Broker
Graeme Dickson +44 (0)20 3411 1880
Yellow Jersey PR
Financial PR
Felicity Winkles
Alistair de Kare-Silver
Joe Burgess +44 (0)7825 916 715
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 and the Northern Territory that are
prospective for nickel sulphides, gold and rare earths. 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 has now been completed.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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