PEPR Approved

RNS Number : 6761Q

Strategic Minerals PLC

29 June 2022

 

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.

29 June 2022

Strategic Minerals plc

("Strategic Minerals" or the "Company")

PEPR Approved

Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a profitable producing mineral company, is pleased to announce that it has received approval for the planned mining activities of its wholly owned subsidiary. Leigh Creek Copper Mine ("LCCM"), accessing the Paltridge North ("PN") deposit to be processed at the nearby Mountain of Light ("MoL") plant.

Highlights

· PEPR approval ensures LCCM now "shovel ready", subject to finance

· Approval relates to the processing of copper oxide

· Rehabilitation Financial Assurance reduced by approximately AUD 800,000 to AUD 2,890,000

· Native Vegetation Fund contribution increased by approximately AUD 50,000 to AUD 139,035

· Requirement, as anticipated, to provide monitoring reports and to observe identified areas of historical significance to indigenous communities.

LCCM has received notification from the South Australian Department of Energy and Mining ("DEM") under the Mining Act 1971 of approval of the Program for Environment Protection and Rehabilitation for Mineral Lease (ML) 5467 - Mountain of Light Copper Mine.

The approval is in line with expectations and relates to the mining and processing of copper oxide from LCCM's PN deposit. From LCCM's previous drilling results, the PN deposit appears to have a layer of waste material that needs to be removed (approximately 6 weeks mining) followed by a layer of copper oxide material and then descending into transitional sulphide ore. It is anticipated that it will be over 12 months after mining commences before the transitional ore is reached. 

LCCM is confident that, by the time the transitional ore is reached, LCCM will have submitted, and had approved by DEM, procedures for extracting and processing the transitional ore. This is because the submission will largely consist of the existing PEPR documentation with minor variations in relation to the extraction and handling of the transitional sulphide ores. Work on the submission has commenced.

As part of the negotiations with DEM in relation to the original conditional PEPR issued in July 2021, LCCM were able to reduce the rehabilitation bond by approximately AUD 800,000 from AUD 3,700,000 to AUD 2,890,000 reflecting reasoned proposals from the Company's mine manager John Speck.  As LCCM currently has a AUD 200,000 deposit with DEM, this represents a net funding requirement of AUD 2,690,000.

While reviewing further information supplied by LCCM in relation to the conditional requirements, DEM have increased the required contribution to the Native Vegetation Fund from AUD 81,398.52 to AUD 139,035.

Also associated with the approval are a number of, expected, reporting requirements and observation of identified indigenous sacred sites.

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

"The approval, while having taken longer due to a number of factors, is welcomed, anticipated news. This provides a focal point by which to progress discussions currently underway with potential funders/joint venture partners.

"With regard to funding of the LCCM project, the Company has had numerous parties review the project and, currently, has three interested parties who have signed the Company's Confidentiality Agreement and have been in our data room for a month or more.  These parties reflect a European based, mining focused fund, a large, respected, global copper supplier with activities in South Australia and the equity investment and debt funding arms of a major Australian, internationally recognised bank.

 "While recent declines in the copper price, associated with fears of global recession, have impacted the forecasted profitability of the project, the associated drop in the Australian Dollar/US Dollar exchange rate has partially offset the impact on profitability ensuring that the project remains an extremely attractive one from an investors perspective."

For further information, please contact:
Strategic Minerals plc		[phone]
John Peters
Managing Director
Website:	www.strategicminerals.net
Email:	[e-mail]
Follow Strategic Minerals on:
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Twitter:	@SML_Minerals
LinkedIn:	https://www.linkedin.com/company/strategic-minerals-plc
SP Angel Corporate Finance LLP		[phone]
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 June 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 early January 2022, an updated PEPR, addressing the conditions associated with the July 2021 approval, was lodged.

 

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