Sign up Australia
Proactive Investors - Run By Investors For Investors

Strategic Minerals completes on the acquisition of Leigh Creek with the issuance of shares to vendor RMA

Strategic Minerals can now set about contemplating a restart at Leigh Creek in earnest
Strategic Minerals completes on the acquisition of Leigh Creek with the issuance of shares to vendor RMA
Plans to restart mining copper at Leigh Creek are underway

Strategic Minerals PLC (LON:SML) has determined the number of shares to be issued to Resilience Mining Australia Limited to complete the acquisition of Leigh Creek Copper Mine Pty Ltd (LCCM) and has arranged the issuance of its shares as laid out in the agreed timetable.

Under the terms of the acquisition, signed 5 March 2018, Strategic Minerals was obligated to deliver shares to RMA to the value of A$1.45mln at a price based on the March volume weighted average and the relevant exchange rate.

WATCH: Strategic Minerals ‘a battery materials company at a very exciting place’

Accordingly, the total number of Strategic Minerals shares to be issued is 41,567,630 of which 38,700,900 are currently being issued and 2,866,730 are to be issued on 5 March 2019, subject to no warranty claim having been made.

"Issuance of the shares to RMA effectively completes our obligations relating to the acquisition of Leigh Creek copper mine and the Board is extremely excited by the prospect of re-starting production at the site,” said Strategic Minerals managing director John Peters.

"Considerable investment has been made to understand the requirements to successfully restart operations at Leigh Creek.

"In particular, the team reviewed the factors, which in its opinion, had resulted in closure of the operations (strategically: poor initial grade and heap management policies; commercially: overstaffing and a lack of goal congruence for the earth moving contractor) and was comforted by the fact that operations appeared to have significantly improved when working capital considerations, associated with previous practices and falling copper prices, led to the closure of the mine."

View full SML profile View Profile

Strategic Minerals Plc Timeline

Related Articles

copper wires
October 12 2018
Leigh Creek will add to the cash being generated by New Mexico-based iron ore business Cobre to fund exploration and development opportunities elsewhere.
March 13 2018
Getting financing will be a "significant" milestone toward the construction, said the group
copper tubes
May 30 2018
The latest economic study at Parys Mountain has delivered some encouraging numbers against a backdrop of rising base metals prices

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use