REG - Strategic Minerals - Lodgement of additional PEPR at Leigh Creek

Strategic MineralsAnnouncement

29/12/2022 07:00

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RNS Number : 0731L  Strategic Minerals PLC  29 December 2022

 

 

29 December 2022

Strategic Minerals plc

("Strategic Minerals" or the "Company")

Lodgement of PEPR for treating transitional ore at Leigh Creek Copper Mine

Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a profitable producing
mineral company, is pleased to announce that its wholly owned subsidiary,
Leigh Creek Copper Mine Pty Ltd ("LCCM"), has today lodged, with South
Australia's Department of Energy and Mining ("DEM"), an application for a new
Program for Environmental Protection and Rehabilitation ("PEPR") relating to
planned mining at Paltridge North.  This is being sought as part of LCCM's
expected 2023 re-opening of operations at Mountain of Light at Leigh Creek,
subject to funding.

The new PEPR encompasses much of the information in the previous PEPR plus
additional information DEM required in relation to the treatment of
transitional ore expected to be mined as the planned pit reaches greater
depth.  Accordingly, it is not expected that approval of this PEPR will be as
protracted as was the case with the previous, now approved, PEPR.

Negotiations on planned funding of the restart of production are at an
advanced stage with a party who has extensively accessed the Company's data
room and visited the LCCM site. However, it is stressed that, at this time, no
binding arrangements have been entered into and there can be no certainty that
such arrangements will be entered into.

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

"Lodgement of the PEPR for treatment of transitional ores at Paltridge North
represents the next step in the expected re-opening of operations at Mountain
of Light in 2023, subject to funding. It is expected that this PEPR's approval
will be achieved in a time frame that is within the planned mining critical
path.

"While no binding arrangements have been entered into yet, our dealings with a
party during the December quarter are very encouraging and the Company hopes
to be able to convert this into a binding arrangement early in 2023.

"Although the time taken to get to this point has been frustrating, the Board
now considers it highly likely, subject to finance, that operations will
recommence in 2023 and we are encouraged by the rebound in the copper price to
around US$4lb."

 

 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 September 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 late September 2022, an updated PEPR, addressing the
conditions associated with the July 2021 approval, was approved.

 

 

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