REG - Strategic Minerals - Call Option Payment Received for LCCM

Strategic MineralsAnnouncement

18/06/2025 07:00

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RNS Number : 2595N  Strategic Minerals PLC  18 June 2025

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 ('MAR') which has been incorporated into UK law by the
European Union (Withdrawal) Act 2018.

 

 

18 June 2025

 

Strategic Minerals plc

("Strategic Minerals" or the "Company")

Call Option Payment Received for Leigh Creek Copper Mine

 

Further to previous announcements on 24 April, 23 May, and 9 June 2025,
Strategic Minerals plc (AIM: SML; USOTC: SMCDF), an international mineral
exploration and production company, announces that the Company has received
the full payment from Axis Mining & Minerals Pty Ltd (the "Purchaser") of
A$100,000 for an exclusive call option to acquire 100% of the Leigh Creek
Copper Mine (the "Call Option").

As previously announced, under the Call Option, which is exercisable for a
period of six months (or such longer period as may be agreed by the parties),
the Purchaser may elect to acquire 100% of LCCM for an initial payment to
Strategic Minerals of A$1.9 million in cash. The Purchaser anticipates
completing a listing on the Australian Securities Exchange upon which it will,
if the Call Option is exercised, issue shares to Strategic Minerals equivalent
to 19.9% of the listed vehicle up to a maximum value limit of A$3 million*.
The Purchaser will also pay an earn-out to Strategic Minerals equivalent to
A$4 million ("Earn-Out Consideration") to be paid on a half yearly basis from
the commencement of commercial production from Leigh Creek Copper Mine with
each half yearly payment to be the equivalent of 20% of net free cash flows
from the prior period.

 

(*)In the event of the share issuance to Strategic Minerals being less
than A$3 million as a result of the 19.9% limit, the Earn-Out Consideration
shall be adjusted to a higher level to reflect the difference in value from
the A$3 million maximum limit.

 

 For further information, please contact:

 Strategic Minerals plc                                                   +44 (0) 207 389 7067
 Mark Burnett
 Executive Director
 Website:                 www.strategicminerals.net (http://www.strategicminerals.net)
 Email:                   info@strategicminerals.net (mailto:info@strategicminerals.net)

 Follow Strategic Minerals on:
 X:                       @StrategicMnrls (https://x.com/StrategicMnrls)
 LinkedIn:                https://www.linkedin.com/company/strategic-minerals-plc
                          (https://www.linkedin.com/company/strategic-minerals-plc)

 SP Angel Corporate Finance LLP                                           +44 (0) 20 3470 0470
 Nominated Adviser and Broker
 Matthew Johnson/Charlie Bouverat/Grant Barker

 Zeus Capital Limited                                                     +44 (0) 203 829 5000
 Joint Broker
 Harry Ansell/Katy Mitchell

 Vigo Consulting                                                          +44 (0) 207 390 0234
 Investor Relations
 Ben Simons/Peter Jacob/Anna Sutton
 Email:                   strategicminerals@vigoconsulting.com
                          (mailto:strategicminerals@vigoconsulting.com)

 

Notes to Editors

About Strategic Minerals Plc and Cornwall Resources Limited

Strategic Minerals plc (AIM: SML; USOTC: SMCDY) is an AIM-quoted, producing
minerals company, actively developing strategic projects in the UK, United
States and Australia.

In 2019, the Company completed the 100% acquisition of Cornwall Resources
Limited and the Redmoor Tungsten-Tin-Copper Project.

The Redmoor Project is situated within the historically significant Tamar
Valley Mining District in Cornwall, United Kingdom, with a JORC (2012)
Compliant Inferred Mineral Resource Estimate published 14 February 2019:

 Cut-off (SnEq%)          Tonnage (Mt)  WO(3)  Sn    Cu    Sn Eq(1)  WO(3) Eq

                                        %      %     %     %         %
 >0.45 <0.65              1.50          0.18   0.21  0.30  0.58      0.41
 >0.65                    10.20         0.62   0.16  0.53  1.26      0.88
 Total Inferred Resource  11.70         0.56   0.16  0.50  1.17      0.82

1 Equivalent metal calculation notes; Sn(Eq)% = Sn% x 1 + WO3% x 1.43 + Cu% x
0.40. WO(3)(EQ)% = Sn% x 0.7 + WO(3) + Cu% x 0.28.  Commodity price
assumptions: WO3 US$ 33,000/t, Sn US$ 22,000/t, Cu US$ 7,000/t.  Recovery
assumptions: total WO3 recovery 72%, total Sn recovery 68% & total Cu
recovery 85% and payability assumptions of 81%, 90% and 90% respectively

More information on Cornwall Resources can be found at:
https://www.cornwallresources.com (https://www.cornwallresources.com)

In September 2011, Strategic Minerals acquired the distribution rights to the
Cobre magnetite project in New Mexico, USA, through its wholly owned
subsidiary Southern Minerals Group.  Cobre has been in production since 2012
and continues to provide a sustainable revenue stream for the Company.

In March 2018, the Company completed the acquisition of the Leigh Creek Copper
Mine situated in the copper rich belt of South Australia.  The Company
continues seek opportunities to monetise the asset and has signed a
non-binding Heads of Agreement to grant an option to acquire the project.

 

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