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.
29th May 2019
Strategic Minerals plc
("Strategic Minerals", "SML" or the "Company")
Extension of Settlement Time on Acquisition of Balance of Redmoor Project
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a producing mineral company actively developing projects prospective for battery materials, has signed a Deed of Variation with New Age Exploration Limited ("NAE") to defer the initial payment date for the acquisition of NAE's 50% shareholding in Cornwall Resources Limited ("CRL") from 30 May 2019 to 27 June 2019. The deferral is to allow for the expected receipt of the funds from Cobre's major client, referred to in the Company's announcement on 24 May 2019. All other terms remain unchanged except that, in consideration for NAE agreeing to these arrangements, SML has agreed to pay NAE a postponement fee of A$10,000.
John Peters, Managing Director of Strategic Minerals, commented:
"The deferral of the settlement date for the acquisition of the balance of CRL shares allows the Company to match expected cash flows within the SML group. We thank NAE for working with us in this regard and this agreement reflects the close relationship developed over the past few years."
Notes to Editors
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 which has now been scheduled for 27 June 2019.