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(Alliance News) - Strategic Minerals PLC on Tuesday said it has raised GBP890,000 through a 63.6 million share placing and subscription priced at 1.4 pence per share to tide the company over while it awaits payment from a client.
Shares in Strategic Minerals were down 7.5% at 1.62 pence in afternoon trade.
The producing mineral company will used the money to close the purchase of the remaining shares in Cornwall Resources Ltd and for working capital in the development of its Leigh Creek copper mine project in South Australia.
Strategic Minerals said it still views the USD4.1 million payment owed to its by a major client of its Cobre plant as "imminent" and capable of being "received at any time".
Chair Alan Broome said: "This modest placing has been undertaken as we await the anticipated receipt of over USD4 million from the Cobre client. SML appreciates the continued backing of our largest shareholder, as well as from another large, existing investor. The remaining participants in the placing consisted of the board and the wider SML team.
He added: "We remain in close contact with our Cobre client and believe payment may occur at any time. However, we are carefully preparing to progress a claim for substantial potential lost profits, should payment not be forthcoming in the near future."
