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LONDON (Alliance News) - Strategic Minerals PLC on Monday said it has yet to receive the USD4 million owed by a major client of its Cobre project and is preparing a claim for service.
Shares in Strategic Minerals, which acquired the rights to operate the Cobre magnetite stockpile in the US back in 2011, were down 5.6% at 1.70 pence in late morning trade.
Strategic Minerals is a producing mineral company and develops projects prospective for battery minerals. Its major client, who has not been disclosed, has indicated that payment of the USD4 million is "imminent".
Despite these assurances, Strategic Minerals has decided "to prepare a claim for service on the client" and expects to seek damages of more than the amounts due from the client.
Strategic Minerals Managing Director John Peters said: "The company is hopeful that a non-litigious solution can be reached with the major Cobre client. However, in the best interests of shareholders, the board has agreed to prepare a claim in relation to potential lost profits associated with the balance of sales due under the contract. It is expected that this claim will be served shortly, and the company will keep the market apprised of developments in respect of this claim."
