Last checked at 24 Aug 2015 07:00
24th August 2015
Strategic Minerals plc
("Strategic Minerals" or the "Company")
Tatu Coal Project Update - Commencement of Bulk Sample Work
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), the diversified mineral development and production company, announces that it has, through its 51 per cent owned subsidiary King Country Mining Limited, entered into contracts to produce a bulk sample from the Tatu Coal Project ("Tatu") on the North Island of New Zealand.
The production of the bulk sample involves not only the extraction of the coal but also the establishment of some of the safety requirements associated with Tatu being an operating mine, and which will form part of the requirements for the future operation of the Tatu mine.
A number of contractors are involved with the delivery of the bulk sample and work safety documentation and procedures, which is expected to cost approximately NZD $280,000 in total to produce. Once the bulk sample has been delivered, it will be tested by the Company's consultants and by potential clients to ensure its suitability for their processes.
The Company is targeting completion of the bulk sample work and feasibility studies in sufficient time that construction of the mine can commence in Q1 2016, subject to positive market feedback and funding being secured. The Board is seeking to secure the funding for construction of the mine through its industry contacts and consultants, which may include joint ventures or debt and has now signed a non-binding Memorandum of Understanding with China Coal Technology Engineering Group (CCTEG) to provide pricing and funding options associated with both the mine equipment and operations.
Managing Director John Peters said "The commencement of the production of the bulk sample is an important step in the delivery of an economically commercial coal mine at Tatu and we look forward to delivering samples to potential customers and finalising feasibility studies as soon as possible.
"I believe we are well positioned to progress the Tatu project and are in discussions with potential contractors, looking to undertake the construction and operation of the mine, to potentially finance the development of the project. The signing of the non-binding MOU with CCTEG reflects this progress"
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 which meet local market demand for commodities.
In September 2011, the Strategic Minerals purchased, its first cash generating asset, the Cobre magnetite tailings dam project in New Mexico, USA 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 by H1 2016.