Strategic Minerals PLC Cobre Magnetite Operations Update (0250H)
02 June 2017 - 9:48PM
UK Regulatory
TIDMSML
RNS Number : 0250H
Strategic Minerals PLC
02 June 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.
2 June 2017
Strategic Minerals plc
("Strategic Minerals" or the "Company" or "SML")
Cobre Magnetite Operations Update
Strategic Minerals PLC (AIM: SML; USOTC; SMCDY), the diversified
mineral production and development company, announces that its
wholly owned subsidiary Southern Minerals Group ("SMG") has
received the final payment of US$175,000 due under its rail
settlement agreement with the rail provider at the Cobre magnetite
tailings operation ('Cobre'), New Mexico, USA and has confirmed and
commenced its substantial new contract to supply a minimum of 4,000
tons of magnetite per month.
The receipt yesterday of US$175,000, in relation to the rail
settlement reached in July 2016, completes the balance of the
US$675,000 due under the agreement.
As reported on 10 April 2017, SMG contracted with a substantial
new client to supply a minimum of 4,000 tons of magnetite per month
(minimum 48,000 tons in a full year). This client has, in addition
to lodging a US$250,000 deposit, now confirmed and commenced the
contract. Both SMG and the client have worked closely to deliver
this result and the level of co-operation shown by both sides
augurs well for the term of the contract.
Commenting, John Peters, Managing Director of Strategic
Minerals, said:
"The commencement of the new contract at Cobre provides the
potential to double our existing record breaking sales performance
and sets the Company on a profitable course for the years ahead. By
underwriting an additional minimum 4,000 tons per month and with
this likely to improve our existing profit margins at Cobre, the
cash and profitability of the overall Strategic Minerals group
appears strong and improving.
"The commencement of the new contract at Cobre, combined with
the receipt of the final payment due under the rail settlement
agreement, places Strategic Minerals in a healthy cash position
ready to internally fund proposed drilling requirements for our
Redmoor and CARE projects in the UK and Australia, as well as
opening up potential for involvement in additional projects."
For further information, please contact:
Strategic Minerals plc +61 (0) 414 727 965
John Peters
Managing Director
www.strategicminerals.net
Follow Strategic Minerals on:
Vox Markets: www.voxmarkets.co.uk/company/SML
Twitter: @SML_Minerals
LinkedIn: www.linkedin.com/company/strategic-minerals-plc
Facebook: https://www.facebook.com/search/top/?q=strategic%20minerals%20plc
SP Angel Corporate Finance LLP
Nominated Adviser and Joint Broker +44 (0)20 3470
Ewan Leggat 0470
Optiva Securities Limited
Joint Broker +44 (0)20 3411
Graeme Dickson 1880
Yellow Jersey PR
Financial PR
Felicity Winkles
Alistair de Kare-Silver +44 (0)7825
Joe Burgess 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 cobalt, gold, nickel sulphides and rare earths. The
Company has since acquired all shares in Central Australian Rare
Earths Pty Ltd. 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 and drilling at the project has commenced.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCUUSARBSANRAR
(END) Dow Jones Newswires
June 02, 2017 07:48 ET (11:48 GMT)
Strategic Minerals (LSE:SML)
Historical Stock Chart
From Apr 2024 to May 2024
Strategic Minerals (LSE:SML)
Historical Stock Chart
From May 2023 to May 2024