Strategic Minerals Plc (LON:SML) (USOTC:SMCDY) has announced that its Ebony Iron Pty Ltd subsidiary has completed the binding exchange of contracts for the acquisition of Leigh Creek Copper Mine Pty Ltd from Resilience Mining Australia Pty Ltd for a total consideration of AS$3.00mln (approximately £1.71mln)
LCCM owns the exploration and mining rights and associated copper processing assets at the Leigh Creek Copper Mine in South Australia.
In a statement, the AIM-listed diversified mineral development and production company said it believes the project represents “a near-term, low-capex copper production opportunity with the potential for early cash flow generation.”
It said: “Additionally, the Project will allow the Company to significantly expand its current resource base.”
The group said, as previously announced, under the contract there are a small number of conditions precedent to be completed before final settlement, but these are mainly procedural, and settlement is expected to occur in approximately one month.
John Peter, Strategic Minerals’ managing director commented: “We are already formulating our development plans for LCCM and see the project as having potential to deliver cash flows in 2019.”
He added: “The Management and Board are very much of the opinion that Leigh Creek is a project that will become a key asset in the SML portfolio and we are excited to get underway with development once the transaction is settled."