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.
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."