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Pin to quick picksStrategic Minerals Regulatory News (SML)

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Major Cobre Client Update

22 Jun 2020 11:03

RNS Number : 6609Q
Strategic Minerals PLC
22 June 2020
 

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

 

22 June 2020

Strategic Minerals plc

("Strategic Minerals" or the "Company")

Major Cobre Client Update

Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a producing mineral company actively developing projects prospective for battery materials, announces that following the filing of a legal claim against the former Cobre client in court in the USA, CV Investments LLC ("CV Investments" or "Client") has been named as the major client whom the Company's wholly owned subsidiary, Southern Minerals Group ("SMG"), was recently awarded US$21,929,259 in damages and costs, exclusive of additional interest.

Key developments with this Client detailed as below:-

In April 2017, negotiations commenced with CV Investments, through its principal, Brenda Smith. In line with any such contract, a cash deposit of US $0.25m was made with CV Investment's lawyer.

From July 2017 until February 2018, a total of 38,455 tons of magnetite was collected by CV Investments from the Cobre stockpile site and SMG received US $3.075m (including $0.1m applied from the lawyer's deposit).

When shipments ceased in March 2018, the Company entered into negotiations with CV Investments to receive quarterly top up deposit payments of US $0.375m per quarter to be held by SMG. The first two of these payments, covering the June and September 2018 quarters (US $0.75m), were received and the balance of deposit funds, US $0.15m, was released,

Despite repeated enquiries and a series of promises from the Client, no further payments were made and ultimately a breach notice was provided as required by our contract. At the time of preparing the breach notice, SMG became aware that the assets of CV Investments had been frozen by the US Securities and Exchange Commission ("SEC") and that Brenda Smith had been charged for running a Ponzi scheme in relation to her mutual funds operations.

Throughout the process, SMG and the board of Strategic Minerals have undertaken their fiduciary duties and acted in the best interests of shareholders to maximise the residual value of the contract. Accordingly, it has kept the market informed to the extent permitted by its legal advice. It is noted that, while the Company has not been able to disclose the contract counterparty, it has cautioned the market on what assets, if any, would be capable of being recouped from the Client. Even now there is no clarity on the amount or timing SMG may expect associated with the SEC's request for the appointment of a receiver

Commenting, John Peters, Managing Director of Strategic Minerals, said:

"CV Investments has caused the Company considerable angst but has also contributed meaningful funds. While the Board has been restrained until now in naming the counterparty, it should be noted that they have full confidence in the value of the Company and have continued to invest in the Company's shares throughout this period."

 

For further information, please contact:

Strategic Minerals plc

+61 (0) 414 727 965

John Peters

Managing Director

Website:

www.strategicminerals.net

Email:

info@strategicminerals.net

Follow Strategic Minerals on:

Vox Markets:

https://www.voxmarkets.co.uk/company/SML/

Twitter:

@SML_Minerals

LinkedIn:

https://www.linkedin.com/company/strategic-minerals-plc

Facebook:

https://www.facebook.com/search/top/?q=strategic%20minerals%20plc

SP Angel Corporate Finance LLP

+44 (0) 20 3470 0470

Nominated Adviser and Broker

 

Ewan Leggat

 

Charlie Bouverat

 

 

Notes to Editors

Strategic Minerals plc is an AIM-quoted, operating minerals company actively developing projects prospective for battery materials. It has an operation in the United States of America and Australia along with development projects in the UK and Australia. The Company is focused on utilising its operating cash flows, along with capital raisings, to develop high quality projects aimed at supplying the metals and minerals being sought in the burgeoning electric vehicle/battery market.

In September 2011, Strategic Minerals acquired the distribution rights to the Cobre magnetite tailings dam project in New Mexico, USA, a cash-generating asset, which it brought into production in 2012 and which continues to provide a revenue stream for the Company. This operating revenue stream is utilised to cover company overheads and invest in development projects orientated to supplying the burgeoning electric vehicle/battery market.

In January 2016, the portfolio was expanded with the acquisition of shares in Central Australian Rare Earths Pty Ltd, which holds tenements in Western Australia prospective for cobalt, nickel sulphides and rare earth elements. The Company has since acquired all shares in Central Australian Rare Earths Pty Ltd. In September 2018, the Company entered contracts for the sale of certain CARE tenements identified as gold targets.

In May 2016, the Company entered into an agreement with New Age Exploration Limited and, in February 2017, acquired 50% of the Redmoor Tin/Tungsten project in Cornwall, UK. The bulk of the funds from the Company's investment were utilised to complete a drilling programme that year. The drilling programme resulted in a significant upgrade of the resource. This was followed in 2018 with a 12-hole 2018 drilling programme has now been completed and the resource update that resulted was announced in February 2019. In March 2019, the Company entered into arrangements to acquire the balance of the Redmoor Tin/Tungsten project. This was completed on 24 July 2019.

In March 2018, the Company completed the acquisition of the Leigh Creek Copper Mine situated in the copper rich belt of South Australia and brought the project into production in April 2019.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
MSCSEFFSEESSESM
Date   Source Headline
20th Mar 20247:00 amRNSDuchy of Cornwall Mineral Rights Agreement
7th Mar 20247:00 amRNSCobre Sales Update
8th Feb 202411:41 amRNSCobre Sales Update and Cash Management
18th Jan 20247:00 amRNSCobre Update
10th Nov 20237:00 amRNSCompletion of Deep Digital Cornwall Project
11th Oct 20237:00 amRNSMoU Signed with Oxford Sigma Limited
28th Sep 20237:00 amRNSInterim Results - Half Year to 30 June 2023
18th Jul 20233:28 pmRNSResult of AGM
14th Jul 20237:00 amRNSUpdate on Projects
21st Jun 20237:00 amRNSFinal Results for the Year Ended 31 December 2022
25th Apr 20237:00 amRNSQ1 2023 Magnetite Sales and Cash Balances
21st Mar 202311:00 amRNSPrice Monitoring Extension
7th Mar 202311:05 amRNSSecond Price Monitoring Extn
7th Mar 202311:00 amRNSPrice Monitoring Extension
9th Feb 20237:00 amRNSQ4 2022 Magnetite Sales and Cash Balances
30th Jan 20234:35 pmRNSPrice Monitoring Extension
18th Jan 20239:05 amRNSSecond Price Monitoring Extn
18th Jan 20239:00 amRNSPrice Monitoring Extension
17th Jan 20234:40 pmRNSSecond Price Monitoring Extn
17th Jan 20234:35 pmRNSPrice Monitoring Extension
29th Dec 20227:00 amRNSLodgement of additional PEPR at Leigh Creek
24th Oct 20224:41 pmRNSSecond Price Monitoring Extn
24th Oct 20224:35 pmRNSPrice Monitoring Extension
20th Oct 20227:00 amRNSQ3 2022 Magnetite Sales and Cash Balances
21st Sep 20227:00 amRNSInterim Results - Half Year to 30 June 2022
14th Sep 20227:00 amRNSRedmoor - Deep Digital Cornwall Update
9th Sep 20224:41 pmRNSSecond Price Monitoring Extn
9th Sep 20224:35 pmRNSPrice Monitoring Extension
6th Sep 202210:31 amRNSHolding(s) in Company
20th Jul 20227:00 amRNSQ2 2022 Cobre Magnetite Sales and Cash Balances
6th Jul 20222:52 pmRNSResult of AGM
30th Jun 20223:47 pmRNSDirector Dealing
29th Jun 20226:02 pmRNSDirector Dealing
29th Jun 20222:06 pmRNSSecond Price Monitoring Extn
29th Jun 20222:00 pmRNSPrice Monitoring Extension
29th Jun 20221:57 pmRNSPEPR Approved
10th Jun 20227:00 amRNSResults for the Year Ended 31 December 2021
22nd Apr 20227:00 amRNSQ1 2022 Magnetite Sales and Cash Balances
21st Apr 20227:00 amRNSRedmoor Update
1st Apr 20224:41 pmRNSSecond Price Monitoring Extn
1st Apr 20224:35 pmRNSPrice Monitoring Extension
28th Mar 20227:00 amRNSCobre Access Extended Until 31 March 2027
3rd Mar 20221:46 pmRNSCobre Access Rollover Confirmed
21st Feb 20224:41 pmRNSSecond Price Monitoring Extn
21st Feb 20224:36 pmRNSPrice Monitoring Extension
31st Jan 20222:01 pmRNSPrice Monitoring Extension
27th Jan 202210:03 amRNSDirector/PDMR Shareholding
26th Jan 20229:20 amRNSQ4 Magnetite Sales and Cash Balances
5th Jan 202211:33 amRNSLeigh Creek Copper Mine - Revised PEPR Submitted
30th Dec 20214:41 pmRNSSecond Price Monitoring Extn

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