Last checked at 22 Dec 2015 08:27
22 December 2015
Strategic Minerals Plc
("Strategic Minerals" or the "Company")
Confirmation of Extension for Cobre Operations
The Board of Strategic Minerals Plc (AIM: SML; USOTC: SMCDY) is pleased to announce that its wholly owned subsidiary, Southern Minerals Group LLC ("SMG"), has obtained agreement for the extension of its rights to operate the magnetite operations at the Cobre mine in New Mexico until 31 March 2017 (the "Agreement").
SMG's rights at Cobre were due to expire at the end of February 2016 and the Directors of Strategic Minerals believe that reaching this Agreement well ahead of expiry highlights the strong relationship created between the mine owners and SMG.
The Agreement comes after two record breaking weeks of domestic sales from Cobre. In the week ended 13 December 2015, SMG recorded a record domestic sales week of US $75,596 only to outstrip this in the week ended 20 December 2015 with sales of US $77,981, versus an average for the year of circa US $25,000 per week. These higher level sales help to offset the lean period experienced in the middle of the year and total sales are expected to be broadly in line with the previous year (US $1,270,000), if not marginally lower.
The President of SMG, Clovis Hooper, said:
"The recent upswing in sales has been the result of the work put into clearing logistic impediments and to the delivery of the magnetite, and, while we anticipate a slowing of sales during the Christmas period, 2016 is looking like being a good year".
Commenting, John Peters, Managing Director of Strategic Minerals, said:
"The efficient operation of SMG's access to the magnetite stockpile has been highlighted by its recent sales performance, and, when combined with a typical profit ratio of 50% on Cobre, it underlines Strategic Minerals' fortunate position as a resource company with regular cash flow."
For further information, please contact:
Strategic Minerals plc John Peters Managing Director
| +61 (0) 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 Alistair de Kare-Silver | +44 (0)7738 076 304 |
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, which meet local market demand for commodities.
In September 2011, Strategic Minerals purchased, its first cash generating asset, the rights to access the magnetite tailings dam project in New Mexico, USA, known as the Cobre mine, which it brought into production in 2012 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 it will make its first thermal coal sales in H1 2016.