Strategic Minerals PLC (LON:SML) (USOTC:SMCDY) said its wholly-owned subsidiary, Southern Minerals Group (SMG) has reached an agreement with its major client at Cobre in relation to arrears to date and payments going forward, leading to the potential receipt of US$4.065mln within two weeks.
The AIM-listed producing mineral company, which is actively developing projects prospective for battery materials, added that the client has informed SMG that it anticipates having significant funds very shortly and has asked it to refrain from progressing legal action for two weeks.
READ: Strategic Minerals books profits on Cobre production, continues to fund development internally
It said, during this period, the major client has agreed to pay arrears of US$375,000 and top up the existing deposit, held by SMG, by US$3,690,000.
The major client has indicated that it wishes to negotiate the balance of the contract during June and has agreed to the increase in the deposit amount to reflect its good faith in this regard.
John Peters, Strategic minerals’ managing director commented: "SMG has now received written confirmation of the major client's intent to make payment of over US $4m in the next two weeks which would place the SML group in an attractive position to advance its various projects.
"The Company will keep the market fully informed of further developments and of the receipt of funds."
In afternoon trading, shares in Strategic Minerals were 12.9% higher at 1.75p.
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