Strategic Minerals PLC Cobre Sales Contract Further Update (8500P)

TIDMSML

RNS Number : 8500P

Strategic Minerals PLC

31 May 2018

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

31 May 2018

Strategic Minerals plc

("Strategic Minerals", "SML" or the "Company")

Cobre Sales Contract Further Update

Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a producing mineral company actively developing projects prospective for battery materials, wishes to inform the market that its wholly owned subsidiary, Southern Minerals Group ("SMG"), operator of SML's Cobre magnetite stockpile in New Mexico, USA ("Cobre"), has agreed in principle a future plan for magnetite supply arrangements with its largest customer.

SMG's client continues to progress its applications for environmental planning but has not, as yet, received approval. SML has been working with the client to ensure that, irrespective of the progress of the applications, SMG will be in a similar position to that which it would have, had its underlying contract with the client been applied. An agreement in-principle has been reached with the client; documentation is currently being finalised and is expected to be signed in the coming weeks.

A further update with full details will be disclosed once this agreement has been signed.

Commenting, Peter Wale, Non-Executive Director of Strategic Minerals, said:

"The discussions with our largest customer have been extremely encouraging and we are pleased with the proposal which has been agreed in principle. This demonstrates the long-term partnership and mutually beneficial relationship we expect to have with them at Cobre, whilst also reflecting the close working relationship that Strategic Minerals and Southern Minerals Group have with all our clients and partners across each area of our business."

 
 
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Notes to Editors

Strategic Minerals Plc is an AIM-quoted, operating minerals company actively developing projects prospective for battery materials. It has an operation in the United States of America and 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 being sought in the burgeoning electric vehicle/battery market.

In September 2011, Strategic Minerals acquired 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 orientated to supplying the burgeoning electric vehicle/battery market.

In January 2016, the portfolio was expanded with the acquisition of shares in Central Australian Rare Earths Pty Ltd, which holds tenements in Western Australia and the Northern Territory that are prospective for cobalt, gold, nickel sulphides and rare earth elements. The Company has since acquired all shares in Central Australian Rare Earths Pty Ltd.

In May 2016, an additional exploration asset was acquired when the Company entered into an agreement with New Age Exploration Limited to acquire up to 50% of the Redmoor Tin/Tungsten project in Cornwall, UK. This 50% acquisition was completed in February 2017 and a drilling programme completed in 2017 resulted in a significant upgrade of the resource.

In March 2018, the Company completed the acquisition of the Leigh Creek Copper Mine situated in the copper rich belt of South Australia and is currently working to bring this into operation in 2019.

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May 31, 2018 06:13 ET (10:13 GMT)