Contract Escrow Agreement Signed and Funds Wired

RNS Number : 3227C

Strategic Minerals PLC

12 April 2017

 

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.

12 April 2017

Strategic Minerals plc

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

Cobre Magnetite Contract Escrow Agreement Signed and Deposit Funds Wired

Strategic Minerals PLC (AIM: SML; USOTC; SMCDY), the diversified mineral production and development company, is pleased to announce that its subsidiary Southern Minerals Group ("SMG"), the operator of the Cobre magnetite stockpile, entered into an Escrow Agreement in relation to the contract announced in the RNS on 10 April 2017 and has seen evidence that the counterparty to the contract has wired the US $250,000 deposit to be held in escrow by independent solicitors.

Accordingly, the new contract is now in force with sales under the contract to commence from 1 June 2017.  The counterparty may wish to undertake some sales in May but these will be treated independently.

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

"The speed and professionalism shown, by both Southern Minerals Group's President Clovis Hooper and his counterpart, augurs well for the completion of this contract over the years.

"The impact of this contract on SML is significant and provided it runs its full course, the revenue from the entirety of this contract is expected to be well in excess of SML's current market value. This is anticipated to have a strongly positive impact on future cashflow and profitability."

For further information, please contact:

Strategic Minerals plc John Peters Managing Director www.strategicminerals.net Follow Strategic Minerals on: Twitter:   @SML_Minerals                                                            LinkedIn: www.linkedin.com/company/strategic-minerals-plc	[phone]
SP Angel Corporate Finance LLP Nominated Adviser and Joint Broker Ewan Leggat	[phone]
Optiva Securities Limited Joint Broker Graeme Dickson	[phone]
Yellow Jersey PR Financial PR Felicity Winkles Alistair de Kare-Silver Joe Burgess	[phone]

Notes to Editors

Strategic Minerals Plc is an AIM-quoted, diversified mineral development and production company with projects in the United States of America, the UK and Australia. The Company is focused on acquiring and developing cash generative, high quality projects which meet local market demand for commodities and utilising this cash flow to undertake value added exploration. 

In September 2011, Strategic Minerals purchased its first cash generating asset; the Cobre magnetite tailings dam project in New Mexico, USA which it brought into production in 2012 and which continues to provide a revenue stream for the Company. The portfolio was expanded in January 2016 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 earths. 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 has now been completed and drilling at the project has commenced.

 

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