REG - Strategic Minerals - Update on Projects

Strategic MineralsAnnouncement

14/07/2023 07:00

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RNS Number : 9881F  Strategic Minerals PLC  14 July 2023

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.

14 July 2023

Strategic Minerals plc

("Strategic Minerals" or the "Company")

Update on Projects

Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a profitable producing
mineral company, is pleased to provide the following update on the Company's
projects.

 

Highlights

 

·   Cornwall Resources Limited ("CRL") continues to seek to expand its
mineral footprint in the resources rich Cornwall area and expects to be able
to report on progress in the second half of the year.

 

·   CRL was recently notified that its comprehensive grant application to
the Cornwall and Isle of Scilly Council ("CIoS") Shared Prosperity Fund had
proven unsuccessful and is now, with encouragement from CIoS, working on
resubmitting a modified version prior to the next application deadline (4
August 2023).

 

·   CRL has been negotiating with unrelated parties as a precursor to
potential closer formalised relationships.

 

·   A presentation at Austmine's "Copper to the World" conference in
Adelaide, in May, has led to a further two parties exchanging confidentiality
agreements with the Company and accessing Leigh Creek Copper Mine's ("LCCM")
data room.

 

Cornwall Resources Limited ("CRL")

The CRL team has continued to advance the Redmoor project, through completing
the Deep Digital Cornwall ("DDC") data collection component, work on the grant
funding application, re-logging and sampling of existing Redmoor drill core,
progressing negotiations for the expansion of mineral rights and additional
work programs.

The formal working period of DDC closed at the end of June, with an event held
at Camborne School of Mines ("CSM"), where CRL's Senior Geologist, Rowan
Thorne, presented the work to-date.  Project partners CSM, CRL and Cornish
Lithium plc have ceased all new data collection and have moved into a
reporting and project closure stage.  This includes providing a copy of all
datasets to CSM for long term storage and public access.

In the remaining three months of DDC funding, CRL, with project partners, will
be compiling a case study of all data collected for publication and
presentation to interested parties.  In addition, CRL, in its own right, will
be combining all datasets into a new study of the geology and mineralisation
potential of the entire Redmoor project area, with the intention of
highlighting potential new target areas for further investigation and
sampling.

 

As reported last quarter, CRL submitted an application to CIoS for grant funds
from CIoS's Shared Prosperity Fund to undertake the planned development of the
Redmoor project.  Subsequently, a request to provide additional information
was received and replied to.  Despite early enthusiasm showed by CIoS and
others, CRL was recently informed that its application for a comprehensive
grant had been unsuccessful in this form.  In light of feedback from the Good
Growth Team, supporting CIoS, CRL will be submitting a modified grant
application for the round of applications with a 4 August 2023 deadline.

Notwithstanding our recent application for a comprehensive grant, the Company
considers that, at some stage, the Redmoor project is likely to benefit from
Governmental funding given it:

·    Falls within the UK Government's Critical Minerals Strategy;

·    Is anticipated to result in many well-paid jobs for decades in East
Cornwall; and

·    East Cornwall being an area likely to benefit from the UK
Government's "Levelling Up" policy.

Additionally, the Company is encouraged by recent developments in the USA
which indicate that the UK is expected to be classified as a "domestic" source
of some critical minerals, including tungsten and tin.  This may provide the
opportunity for project funding from the considerable amounts allocated to
such arrangements by the US government.  CRL is actively monitoring and
pursuing potential funding from such sources and is encouraged by the US
Department of Defense's recent direction to suppliers to source only
non-Chinese/Russian tungsten in their products by 2027.  With China supplying
85% of world tungsten supplies, Russia supplying 5% of world tungsten supplies
and the US consuming 45% of world tungsten supplies, there is a positive
outlook for the Redmoor project as a potential domestic source of tungsten.

CRL is in active discussions with various parties concerning collaboration to
progress the Redmoor project and is currently working on creating and
executing formal development arrangements, at the asset level, in CRL.
 Additionally, there are, currently, multiple groups accessing the Redmoor
data room confidentially.  Prior to attendance at the Company's AGM on 18
July, the Board will be visiting Cornwall to conduct a full review of CRL's
operations and prospects.

As part of CRL's preparation for grant funding, should this have been made
available, planning permission for an extended exploration drilling campaign
has already been approved by Cornwall Council and supports the Redmoor
project's readiness for future exploration, subject to funding.

Leigh Creek Copper Mine

Following the withdrawal of the potential LCCM debt provider, the Company has
been revisiting parties that may have an equity interest in the project and
presented the project at Adelaide's recent "Copper to the World" conference
hosted by Austmine.  This particular presentation focussed on the mineral
upside of the existing sites and is available on the Company's website at:

https://www.strategicminerals.net/investors/presentations.html
(https://www.strategicminerals.net/investors/presentations.html) .

 

As a result of the presentation and the Company's marketing efforts, there are
currently two parties with experience in the copper and critical minerals
sectors respectively that have exchanged Confidentiality Agreements with the
Company and are actively examining the due diligence folder.  While there is
currently no formal proposal, the nature of the entities (one a copper focused
ASX listed entity and the other the Australian Critical Minerals arm of a
major international energy company) means the Board is optimistic for the
development of some form of arrangement, yet to be agreed.

 

As yet, there has been no correspondence from the South Australia's Department
of Energy and Mining ("DEM") in relation to the Programme for Environmental
Protection and Rehabilitation ("PEPR") lodged in December 2022.  The
Company's enquiries of DEM have indicated that the Department was focussed on
the clearance of a large project and that LCCM's PEPR application was not
prioritised, especially as it related to works that would not be undertaken
until at least one year after re-commencement of operations at Leigh Creek.
Again, it is noted that this PEPR, for the treatment of transitional ores, is
not time critical.

 

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

"The CRL team made a significant, credible submission for a comprehensive
grant which has given it valuable experience for its pending modified grant
application.  To this end, engagement continues with both Cornwall Council
and other local stakeholders.  Recent encouraging discussions with various
parties leave us confident of progress at Redmoor in the second half of the
year including potential expansion of its mineral rights catchment area.

"Feedback from the "Copper to the World" presentation has sparked renewed
interest in the Leigh Creek Copper Mine project which the Company is actively
following up on.

"The Board is currently in Cornwall reviewing CRL's planned operations and
looks forward to seeing shareholders at its upcoming AGM."

 

 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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