CARE Gold Tenements Sale Update

RNS Number : 6099A

Strategic Minerals PLC

13 September 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.

13 September 2018

 Strategic Minerals plc

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

CARE Gold Tenements Sale Update

Further to the announcement on 3 September 2018, Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a producing mineral company actively developing projects prospective for battery materials, is pleased to announce that it has now exchanged contracts for the sale of certain tenements identified as gold targets, currently owned by its wholly owned subsidiary, Central Australian Rare Earths Pty Ltd ("CARE"), to ASX listed Great Southern Mining Ltd ("GSN").

Highlights          

      ·     The Company has exchanged contracts for the sale of the following tenements to GSN:

- E38/2829

- E38/2442

- E38/2587

- E38/2856

·     The Company has received a non-refundable deposit of AUD 50,000.

·     The balance of the purchase price (AUD 50,000 in cash and issuance to CARE of 1,000,000 shares in GSN at an issue price of AUD 0.045) will be paid on completion of the transfer of title of the tenements, expected within one month.

·     On completion, the Company will enter a voluntary escrow agreement ensuring that 500,000 GSN shares will not be sold prior to 30 December 2018 and the balance will not be sold prior to 30 June 2019.

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

"The exchange of contracts on the gold related CARE tenements is a welcome stepping stone to the improved overall management and exploration of the tenements within CARE's portfolio. 

"Additional funding arising from this sale is likely to be applied to further drilling around Hanns Camp, notably at Hanns Camp South, which remains highly prospective for nickel sulphide mineralisation."

For further information, please contact:
Strategic Minerals plc		[phone]
John Peters
Managing Director
www.strategicminerals.net
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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. As set out in this announcement, the Company has conditionally sold certain CARE tenements that have been identified as gold targets.

In May 2016, 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. Phase 1 of the 2018 drill programme is underway.

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.

 

END

 

 

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