Member Info for TarryBreeks

We do own Redmoor Fira, agreement in place: final payment will be in cash or shares but it's a done deal.

Part repost from earlier:

- Redmoor is of course prospective for Tin/Tungsten/Copper JORC Inferred Mineral Resource and Exploration Target in Cornwall of 4.5mt at 1% SnEq
- 100% owned copper mine and tenements at Leigh Creek in Australia with a 100% offtake agreement in place - further funding required likely by joint venture.
- CARE licenses in Australia prospective for rare earth metals and nickel.

That's at least three assets IMO ;)

Enjoy the sunshine and relax Fira, our time will come.

Redmoor Fira, I get you are frustrated, we all are. Constant bashing on here may be cathartic for you but let's try and focus on the positives. LC hasn't worked out exactly as planned but that's the way the cookie crumbles sometimes. If you wanted bank interest you need to invest in a bank. We're in SML for extraordinary returns but with that comes risk. We've been dealt a blow by the Cobre client but that's not the boards fault.

Enjoy the sunshine and the weekend and focus on the positives please :)

Results of arbitration are not known yet Fira. Should be next week though. If we win a decent cash settlement we can complete Redmoor, accelerate LC and review CARE.

If we don't then CARE stats on ice, Redmoor will need some funding and LC will be all about the JV.

A 0.3p puts the market cap at ~£4.5m yet we make $3m revenue from Cobre, not saying it won't happen but there is surely a difference between a company generating income and one that has to place to keep the lights on.

Glad I'm not out of this tsunami of juggernauts over the weekend!

Roll on Monday :)

$21m in non sequential notes please with a punitive kicker for good measure.

"Volume is tiny and the spread is 20% so I don't think it's anything related to an arbitration result. Probably just a pull back from some traders looking for a quick trade before the weekend on arbitration result which hasn't landed yet."

- I mean I don't think it's related to a negative arbitration result.

Volume is tiny and the spread is 20% so I don't think it's anything related to an arbitration result. Probably just a pull back from some traders looking for a quick trade before the weekend on arbitration result which hasn't landed yet.

I don't want to count chickens but personally I don't see how we could lose arbitration the client unilaterally pulled out of a contract. Unless there's some get out of jail free clause in it somewhere for the client the result, at least, should be in our favour. In terms of getting cash perhaps that's less certain but ultimately we still have the magnetite and their deposit - it's contracted deliveries that are in dispute.

Hi Slurm - I remember a statement about no anticipated spending on CARE during 2020 but don't recall a tax liability - can you point me in the right direction to find more detail?

I did recall taking a hit on the gold tenements and this from the 2018 report confirms it: "In September 2018 the Group sold four tenements owned by its 100% owned subsidiary Central Australian Rare Earths Pty Ltd for US$102,000 (A$145,000). The tenements had a cost base of US$347,000 at the time of sale which resulted in a loss on sale of US$245,000." although as part of the sale we were took 1,000,000 shares:

"In September 2018, the Company completed the sale of the tenements E38/2829, E38/2442, E38/2587, E38/2856
to GSN for a total consideration of AUD 145,000 paid by way of AUD 100,000 in cash and issuance to CARE of
1,000,000 shares in GSN at an issue price of AUD 0.045." - GSN is currently trading at AUD 0.086 so that's something.

It would be nice to see the heady heights of 1p+ again - I suspect as do others that the result will be one thing and the amount of cold hard cash we receive another in respect to sp. So the arbitration result may spike the sp and, assuming we are awarded a settlement, cash landing in the bank perhaps another as it will lead to settlement of Redmoor and acceleration of Leigh Creek - who knows perhaps we'll even get Dr Gole back in action stomping around the desert with his metal detector ;)

I was just pondering if the market will be closed until 8am on Monday morning and the decision comes through on Friday afternoon Arizona time (UK markets closed) then could the result be released provided there is an RNS on monday morning at 7am before the markets open? Perhaps not .... just thinking aloud.

If the decision is issued after the markets close on Friday is there anything to prevent the details being shared on the SML website with an accompanying Monday morning RNS as the markets are closed anyway.

Yes Slurm it's $2.3M + $19m + punitive damages which we have no figure for. What I would say is that punitive damages seem to be less likely in US litigation/arbitration cases unless it can be proven beyond doubt that a party has been malicious/underhand and warrants punishment. We don't know any of the details so it's hard for us to know if this has been the case hence the focus on the $21m that has been defined and cited in recent RNS's.

Lack of funds may indeed be a problem but it SML and shareholders shouldn't bear the financial consequence of a client unable to meet their contractual agreements particularly when it's had such a profound affect on our own projects and value. At this point we're not sure who the client is so difficult to know what their position is but a contract was agreed and the client cannot unilaterally pull out of that contract without consequences. We'll know what those consequences are within days and how much of our $21m claim is upheld and ultimately payable.

Well coming down to the wire now. Decision could land at any time today or tomorrow if arbitrator stays true to their assurance of a decision by 30 May. Tick-tock.

lol - well this has been in my bottom drawer for a while and I'd quite like to move it up a few levels - hopefully the BOD and arbitrator will oblige. :)

On face value Prop I agree, it's difficult to read between the lines on this.

The level of the contract is such that any company taking delivery of such significant quantities of magnetite, preparedness to deposit $4m as a deposit for future deliveries and the apparent intention to ramp up deliveries suggests we're not dealing with a small entity here. It's quite possible that the major client still anticipates significant funds and had hoped arbitration would buy more time to allow this to complete and settle. Is the major client major in respect to it's proportion of sales from us or it's national or international standing.

I hope this week it will become a little clearer and at minimum we can expect $2,300,000 in relation to payments outstanding to date.

Client was all over the place with letters of intent - this from May 2019:

"The major client has informed SMG that it anticipates having significant funds very shortly and has asked SMG to refrain from progressing legal action for two weeks. During this two week period, the major client has agreed to pay arrears of US $375,000 and top up the existing deposit, held by SMG, by US $3,690,000. The major client has indicated that it wishes to negotiate the balance of the contract during June and has agreed to the increase in the deposit amount to reflect its good faith in this regard."

https://www.lse.co.uk/rns/SML/strategic-minerals-cobre-client-update--9mywu72r7mug264.html

This money never materialised. I think this is significant.

SML just tweeted out this Q&A session related to Redmoor - worth reading: https://www.criticalmineral.org/post/q-a-session-5-cornwall-resources-tin--tungsten--copper

"The Redmoor resource, of over 11.7 million tonnes at a tin equivalent grade of 1.17%, is of a globally significant scale and grade. We have established this with only three years of work, and the orebody still remains open at depth and to the west. This means that the ultimate deposit size could be significantly larger, making it a very consequential deposit."

Assuming the arbitrator is based in New Mexico it's 6 hours behind GMT which means that an RNS could come late in the day with a ruling: 9am there is 4pm here.

Our claim consists of three elements:

1) in excess of $2,300,000 in relation to payments outstanding to date;
2) in excess of $19,000,000 in relation to lost profits for the balance of the contract; and
3) punitive damages as permitted by law.

Details here https://www.lse.co.uk/rns/SML/strategic-minerals-cobre-arbitration-claim-uxtsww5wtehbpi2.html

Good question but it's nearly double our current market cap in cash so cash alone should mean a sp of double where we are now and that excludes any value for any of our assets.

Yes blacksheep, as per 2nd March 2020 RNS:

"Not later than 30 May 2020 - A reasoned decision of Arbitrator shall be issued."
"SMG will be submitting a claim for in excess of US$ 21 million. "