REG - Strategic Minerals - LCCM Non-Binding Heads of Agreement

Strategic MineralsAnnouncement

24/04/2025 07:02

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RNS Number : 9400F  Strategic Minerals PLC  24 April 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.

 

 

24 April 2025

 

Strategic Minerals plc

("Strategic Minerals" or the "Company")

Non-Binding Heads of Agreement to grant Option to Acquire Leigh Creek Copper
Mine

Strategic Minerals plc (AIM: SML; USOTC: SMCDF), an international mineral
exploration and production company, is pleased to announce it has signed
non-binding Heads of Agreement ("HoA") with Axis Mining & Minerals Pty Ltd
(the "Purchaser")  to grant the Purchaser a call option to acquire Leigh
Creek Copper Mine Pty Ltd  ("LCCM"), the Company's wholly owned subsidiary
which owns the Leigh Creek Copper Project in South Australia (the "Project").

 

Shareholders should note that there can be no certainty at this stage given
the non-binding nature of the HoA that any funds will be received by the
Company pursuant to the HoA and that the Company will enter into a binding
Call Option with the Purchaser.

 

Summary:

 

·    The Purchaser will make a non-refundable payment to Strategic
Minerals of A$100,000 within 30 days from 23 April (or such further period as
may be agreed by the parties), for an exclusive call option to acquire 100% of
LCCM (the "Call Option")

 

·    Under the Call Option, which will be 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 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 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 at the Project 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.

Mark Burnett, Executive Director of Strategic Minerals, commented:

"The sale of Leigh Creek, if completed, would deliver total consideration of
up to A$9 million from a non-core asset and mark a further step in
concentrating our focus on the accelerated development of the high-grade
Redmoor Tungsten-Tin-Copper Project in Cornwall. We look forward to working
with the Purchaser towards its objective of exercising the Call Option."

 

 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:                       @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/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

 

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 Compliant
(2012) 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 acquired the Leigh Creek Copper Mine situated in a
copper rich belt of South Australia. In April 2025, the Company signed a
non-binding Heads of Agreement to sell the Leigh Creek Copper Mine.

 

 

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