Strategic Minerals PLC (LON:SML) (USOTC:SMCDY) said its wholly-owned subsidiary, Southern Minerals Group (SMG), operator of the Cobre magnetite stockpile in New Mexico, has agreed in principle a future plan for supply arrangements with its largest customer.
The AIM-listed firm noted that SMG’s client continues to progress its applications for environmental planning but has not, as yet, received approval.
The minerals company, which is actively developing projects prospective for battery materials, said it has been working with the client to ensure that, irrespective of the progress of the applications, SMG will be in a similar position to that which it would have, had its underlying contract with the client been applied.
It added that an agreement in-principle has been reached with the client; documentation is currently being finalised and is expected to be signed in the coming weeks.
The group said a further update with full details will be disclosed once this agreement has been signed.
Peter Wale, non-executive director of Strategic Minerals, commented: "The discussions with our largest customer have been extremely encouraging and we are pleased with the proposal which has been agreed in principle.”
He added: “This demonstrates the long-term partnership and mutually beneficial relationship we expect to have with them at Cobre, whilst also reflecting the close working relationship that Strategic Minerals and Southern Minerals Group have with all our clients and partners across each area of our business."