REG - Strategic Minerals - Cobre Access Rollover Confirmed

Strategic MineralsAnnouncement

03/03/2022 14:00

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RNS Number : 5656D  Strategic Minerals PLC  03 March 2022

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.

 

3 March 2022

Strategic Minerals plc

("Strategic Minerals" or the "Company")

Cobre Access Rollover Confirmed

Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a profitable, producing
mineral company is pleased to confirm the rollover of access to the magnetite
stockpile in New Mexico for the tenth consecutive year.

Cobre Update

The 10(th) yearly rollover of access to the Cobre magnetite stockpile ensures
continuity of profitable operations for the year ahead and augurs well for
future rollovers.

While the quarter ended 31 December 2021 and January 2022 saw a significant
drop in demand, February 2022 has seen sales 12% higher compared to February
2021 and the first two months of 2022 combined are only marginally below that
of comparable 2021 sales.

 

CV Investments LLC

 

On 22 February 2022, the Receiver for CV Investments LLC was successful in
getting the United States District Court, for the District of New Jersey, to
enter an Order Establishing Claims Procedure and Setting Claims with a Bar
Date of 25 April 2022.  This will involve the Company's wholly owned
subsidiary, Southern Minerals Group ("SMG"), lodging a claim for US$21.9m as
per its recent arbitration.  This development is encouraging and may indicate
some sort of financial result for SMG before the end of the year, although
there is no guarantee as to timing or amount.

 

Commenting, John Peters, Managing Director of Strategic Minerals, said:

"While not unexpected, the rollover of access at Cobre is always an important
milestone in SML's calendar.  Given our close relationship with the mine
owner, the rollover was expected and the Board and Management do not currently
foresee any problems with future rollovers.

"It is pleasing to see that the CV Investments' receivership is moving forward
and the Company anticipates, but is not relying upon, a cash settlement
arising from the closure of this matter.

"Recent significant rises in the copper price, to over US$4.50/lb, have
continued to heighten interest in our Leigh Creek Copper Mine project and we
look forward to it joining Cobre this year as a second income stream for the
Company, subject to securing the necessary funding."

 

 

 

 

 For further information, please contact:

 Strategic Minerals plc                                   +61 (0) 414 727 965
 John Peters
 Managing Director
 Website:               www.strategicminerals.net (http://www.strategicminerals.net)
 Email:                 info@strategicminerals.net (mailto:info@strategicminerals.net)

 Follow Strategic Minerals on:
 Vox Markets:           https://www.voxmarkets.co.uk/company/SML/
                        (https://www.voxmarkets.co.uk/company/SML/)
 Twitter:               @SML_Minerals (https://twitter.com/SML_Minerals)
 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
 Ewan Leggat
 Charlie Bouverat

 

 

Notes to Editors

Strategic Minerals plc is an AIM-quoted, profitable operating minerals company
actively developing projects tailored to materials expected to benefit from
strong demand in the future. It has an operation in the United States of
America along with development projects in the UK and Australia. The Company
is focused on utilising its operating cash flows, along with capital raisings,
to develop high quality projects aimed at supplying the metals and minerals
likely to be highly demanded in the future.

In September 2011, Strategic Minerals acquired the distribution rights to the
Cobre magnetite tailings dam project in New Mexico, USA, a cash-generating
asset, which it brought into production in 2012 and which continues to
provide a revenue stream for the Company. This operating revenue stream is
utilised to cover company overheads and invest in development projects aimed
at supplying the metals and minerals likely to be highly demanded in the
future.

In May 2016, the Company entered into an agreement with New Age Exploration
Limited and, in February 2017, acquired 50% of the Redmoor Tin/Tungsten
project in Cornwall, UK. The bulk of the funds from the Company's investment
were utilised to complete a drilling programme that year. The drilling
programme resulted in a significant upgrade of the resource. This was followed
in 2018 with a 12-hole 2018 drilling programme has now been completed and the
resource update that resulted was announced in February 2019. In March 2019,
the Company entered into arrangements to acquire the balance of the Redmoor
Tin/Tungsten project which was settled on 24 July 2019 by way of a vendor loan
which was fully repaid on 26 June 2020.

In March 2018, the Company completed the acquisition of the Leigh Creek Copper
Mine situated in the copper rich belt of South Australia and brought the
project temporarily into production in April 2019. In July 2021, the project
was granted a conditional approval by the South Australian Government for a
Program for Environmental Protection and Rehabilitation (PEPR) in relation to
mining of its Paltridge North deposit and processing at the Mountain of Light
installation. In early January 2022, an updated PEPR, addressing the
conditions associated with the July 2021 approval, was lodged.

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