Last checked at 16 Jul 2015 09:37
16 July 2015
Strategic Minerals plc
("Strategic Minerals" or the "Company")
Approval for Change of Control of Tatu Mining Licence
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), the diversified mineral development and production company, announces that it has received confirmation that the New Zealand Government has agreed to the change of control of the existing mining licence for the Tatu Coal Project, on the North Island of New Zealand, as a result of the acquisition of King Country Mining Limited ("KCM"), the holder of the mining licence, by Strategic Minerals.
Strategic Minerals announced on 31 March 2015 that it had reached agreement to acquire 51 per cent of KCM, with the balance to be acquired subject to regulatory approvals and funding. With the regulatory approvals now received and Strategic Minerals owning 51 per cent of KCM, under its contractual terms with the vendor of KCM, Strategic Minerals now has until the end of January 2016 to demonstrate financial capacity to complete the mine, before it can exercise its option to acquire the remaining 49 per cent of KCM. Should Strategic Minerals not proceed with exercising its option, the vendor of KCM has the right to acquire the 51 per cent interest in KCM held by Strategic Minerals for NZ$1.
John Peters, the Managing Director of Strategic Minerals said, "The New Zealand Government's approval to the change in ownership of KCM is an important and crucial stepping stone in our plans to develop the Tatu mine. We are currently well developed in our mine plan and are in discussions with suppliers which we believe, in conjunction with our recent capital raising, will provide the vendor of KCM sufficient comfort on Strategic Minerals' financial capacity to complete the project. In the interim, the recent fund raising has provided us the ability to continue preliminary works, including a bulk sample to assist in coal analysis and customer evaluation. Strategic Minerals is targeting commencement of the mine construction by the year end and targeting completion of the mine in mid-2016. We are aiming to achieve some sales during the construction period with greater sales volumes expected after completion of the mine."
For further information, please contact:
Strategic Minerals plc John Peters Managing Director
| +61 414 727 965 |
Allenby Capital Limited Nominated Adviser and Joint Broker Jeremy Porter James Reeve
| +44 (0)20 3328 5656 |
Cornhill Capital Limited Joint Broker James Sheehan Colin Rowbury
| +44 (0)20 3700 2516 |
Yellow Jersey PR Financial PR Dominic Barretto Kelsey Traynor | +44 (0)779 900 3220 |
Notes to Editors
Strategic Minerals plc is an AIM-quoted, diversified mineral development and production company, with projects in the United States of America and New Zealand. The Company is focused on acquiring and developing cash-generative, high-quality projects that meet local market demand for commodities.
In September 2011, Strategic Minerals purchased its first cash generating assets, the Cobre magnetite tailings dam project in New Mexico, USA, which it brought into production in 2014 and which continues to provide a revenue stream for the Company. The portfolio was expanded in March 2015 with the acquisition of the Tatu Coal Mine located in North Island, New Zealand. Strategic Minerals is now developing this project with the expectation that it will make its first thermal coal sales by H1 2016.
In addition, the Company also has an exploration iron ore project in Queensland, Australia.