logo-loader
viewStrategic Minerals PLC

Cobre Arbitration Claim

/**/ h1{margin-top:12.0pt;margin-right:0cm;margin-bottom:0cm;margin-left:21.6pt;margin-bottom:.0001pt;text-align:justify;text-indent:-21.6pt;line-height:107%;font-size:16.0pt;font-family:"Calibri Light","sans-serif";color:#2E74B5;font-weight:normal;}h2{margin-top:2.0pt;margin-right:0cm;margin-bottom:0cm;margin-left:28.8pt;margin-bottom:.0001pt;text-align:justify;text-indent:-28.8pt;line-height:107%;font-size:13.0pt;font-family:"Calibri Light","sans-serif";color:#2E74B5;font-weight:normal;}h3{margin-top:2.0pt;margin-right:0cm;margin-bottom:0cm;margin-left:0cm;margin-bottom:.0001pt;text-align:justify;line-height:107%;font-size:12.0pt;font-family:"Calibri Light","sans-serif";color:#1F4D78;font-weight:normal;}ol{margin-bottom:0cm;}ul{margin-bottom:0cm;}link{ color: blue }visited{ color: #954F72 } .cx{size:595.3pt 841.9pt;margin:56.75pt 63.7pt 56.75pt 72.0pt;}div.cx{}p.eo{margin-top:0cm;margin-right:0cm;margin-bottom:8.0pt;margin-left:0cm;text-align:justify;line-height:107%;font-size:11.0pt;font-family:"Calibri","sans-serif";line-height: normal; margin-bottom: 0cm; text-align: center}span.em{font-size:9.0pt;color:black}p.ep{margin-right:0cm;margin-left:0cm;font-size:12.0pt;font-family:"Times New Roman","serif";margin:0cm;margin-bottom:.0001pt}p.eq{margin-top:0cm;margin-right:0cm;margin-bottom:8.0pt;margin-left:0cm;text-align:justify;line-height:107%;font-size:11.0pt;font-family:"Calibri","sans-serif";font-weight: bold; line-height: normal; margin-bottom: 0cm; text-align: right}span.ej{color:black}p.er{margin-top:0cm;margin-right:0cm;margin-bottom:8.0pt;margin-left:0cm;text-align:justify;line-height:107%;font-size:11.0pt;font-family:"Calibri","sans-serif";font-weight: bold; line-height: 110%; margin-bottom: 6.0pt; text-align: center}p.es{margin-top:0cm;margin-right:0cm;margin-bottom:8.0pt;margin-left:0cm;text-align:justify;line-height:107%;font-size:11.0pt;font-family:"Calibri","sans-serif";line-height: 110%; margin-bottom: 6.0pt; text-align: center}p.et{margin-top:0cm;margin-right:0cm;margin-bottom:8.0pt;margin-left:0cm;text-align:justify;line-height:107%;font-size:11.0pt;font-family:"Calibri","sans-serif";font-weight: bold; line-height: 110%; margin-bottom: 12.0pt; text-align: center} span.ef{color:#212121;background:white}p.eu{margin-right:0cm;margin-left:0cm;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0cm;margin-right:0cm;margin-bottom:6.0pt; margin-left:0cm;text-align:justify;line-height:107%}span.ev{font-size:11.0pt;line-height:107%;font-family:"Calibri","sans-serif"; color:#00000A}p.ew{margin-right:0cm;margin-left:0cm;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0cm;margin-right:0cm;margin-bottom:6.0pt; margin-left:14.2pt;text-align:justify;line-height:107%}span.ea{font-size:11.0pt;line-height:107%;font-family:"Calibri","sans-serif"; color:black}p.ex{margin-top:0cm;margin-right:0cm;margin-bottom:8.0pt;margin-left:0cm;text-align:justify;line-height:107%;font-size:11.0pt;font-family:"Calibri","sans-serif";font-weight: bold; margin-left: 0cm; text-indent: 0cm}span.dz{font-size:11.0pt;line-height:115%;font-family:"Calibri","sans-serif"; color:#00000A}p.ey{margin-top:0cm;margin-right:0cm;margin-bottom:8.0pt;margin-left:0cm;text-align:justify;line-height:107%;font-size:11.0pt;font-family:"Calibri","sans-serif";font-div: italic; margin-left: 0cm; text-indent: 0cm}p.ez{margin-top:0cm;margin-right:0cm;margin-bottom:8.0pt;margin-left:0cm;text-align:justify;line-height:107%;font-size:11.0pt;font-family:"Calibri","sans-serif";font-div: italic; margin-left: 0cm; text-indent: 0cm}table.fa{margin-left:-1.5pt;border-collapse:collapse} tr.dq{height:15.0pt}td.du{width:339.45pt;padding:.75pt .75pt 0cm .75pt; height:15.0pt}p.fb{margin-right:0cm;margin-left:0cm;font-size:12.0pt;font-family:"Times New Roman","serif";margin:0cm;margin-bottom:.0001pt;text-align:justify}span.dw{font-size:11.0pt;font-family:"Calibri","sans-serif"; color:black}td.dr{width:104.7pt;padding:.75pt .75pt 0cm .75pt;height:15.0pt}p.fc{margin-right:0cm;margin-left:0cm;font-size:12.0pt;font-family:"Times New Roman","serif";font-weight: bold; margin: 0cm; margin-bottom: .0001pt; text-align: justify}span.dt{font-size:11.0pt;font-family:"Calibri","sans-serif"; color:#404040}p.fd{margin-right:0cm;margin-left:0cm;font-size:12.0pt;font-family:"Times New Roman","serif";margin:0cm;margin-bottom:.0001pt;text-align:justify}p.fe{margin-right:0cm;margin-left:0cm;font-size:12.0pt;font-family:"Times New Roman","serif";margin:0cm;margin-bottom:.0001pt;text-align:justify}span.ff{font-size:11.0pt;font-family:"Calibri","sans-serif"; color:black} span.fg{color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; font-weight: bold}p.fh{margin-right:0cm;margin-left:0cm;font-size:12.0pt;font-family:"Times New Roman","serif";margin:0cm;margin-bottom:.0001pt}span.do{font-size:11.0pt;font-family:"Calibri","sans-serif"}span.dn{font-size: 11.0pt;font-family:"Calibri","sans-serif"}p.fi{margin-right:0cm;margin-left:0cm;font-size:12.0pt;font-family:"Times New Roman","serif";margin:0cm;margin-bottom:.0001pt}td.dl{width:77.25pt;padding:.75pt .75pt 0cm .75pt;height:15.0pt}p.fj{margin-right:0cm;margin-left:0cm;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0cm;margin-right:-2.85pt;margin-bottom:0cm; margin-left:0cm;margin-bottom:.0001pt}td.dj{width:366.9pt;padding:.75pt .75pt 0cm .75pt; height:15.0pt}span.dk{font-size:11.0pt; font-family:"Calibri","sans-serif"}p.fk{margin-right:0cm;margin-left:0cm;font-size:12.0pt;font-family:"Times New Roman","serif";margin:0cm;margin-bottom:.0001pt} span.fl{color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; font-div: italic}td.dh{border:none}p.fm{margin-top:0cm;margin-right:0cm;margin-bottom:8.0pt;margin-left:0cm;text-align:justify;line-height:107%;font-size:11.0pt;font-family:"Calibri","sans-serif";font-weight: bold; text-align: left}p.fn{margin-right:0cm;margin-left:0cm;font-size:12.0pt;font-family:"Times New Roman","serif";font-weight: bold; line-height: 115%; margin-bottom: 6.0pt; margin-left: 0cm; margin-right: 0cm; margin-top: 0cm; text-align: justify}span.de{font-size:11.0pt;line-height:115%;font-family:"Calibri","sans-serif"}p.fo{margin-right:0cm;margin-left:0cm;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0cm;margin-right:0cm;margin-bottom:6.0pt; margin-left:0cm;text-align:justify;line-height:115%}span.fp{font-size:11.0pt;line-height:115%;font-family:"Calibri","sans-serif"; color:black;letter-spacing:.1pt}span.fq{font-size:11.0pt; line-height:115%;font-family:"Calibri","sans-serif";color:#00000A}p.fr{margin-right:0cm;margin-left:0cm;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0cm;margin-right:0cm;margin-bottom:6.0pt; margin-left:0cm;text-align:justify;line-height:115%}span.fs{font-size:11.0pt;line-height:115%;font-family:"Calibri","sans-serif"; color:black;letter-spacing:.1pt} span.ft{font-size:11.0pt; line-height:115%;font-family:"Calibri","sans-serif";color:black}p.fu{margin-top:0cm;margin-right:0cm;margin-bottom:8.0pt;margin-left:0cm;text-align:justify;line-height:107%;font-size:11.0pt;font-family:"Calibri","sans-serif";font-weight: bold; line-height: 115%; margin-bottom: 6.0pt; text-align: left} /**/
RNS Number : 2714N
Strategic Minerals PLC
23 September 2019
 

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.

 

23 September 2019

Strategic Minerals plc

("Strategic Minerals", "SML" or the "Company")

Cobre Arbitration Claim Lodged

Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a producing mineral company actively developing projects prospective for battery materials, announces that its wholly owned subsidiary, Southern Minerals Group ("SMG"), on Friday 20 September lodged a notice for Arbitration in connection with the contract with its major client at Cobre.  Under its existing contract, a claim through Arbitration must first be made and the name of the client is not to be disclosed unless required by law, which is not deemed to be the case here.

The claim consists of three elements, namely:

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.

The protracted nature of making such a claim and the uncertainty of the final outcome have encouraged the Company to adopt a low-cost approach to the claim.  Accordingly, the Board, in forming its future funding plans, has taken a conservative view and excluded any potential payment from the client and incorporated expected legal fees.

 

John Peters, Managing Director of Strategic Minerals, commented:

"The claim against the major Cobre client has been meticulously reviewed prior its issuance and comes after the breakdown in negotiations with the client.

 

"While the SML group will actively seek suitable compensation from the client, the Board and Management believe that its operations should not rely on any future payments due under this contract until received.  Accordingly, the Board is continuing to review its projects and examining the preferred methods of funding such development.

 

"The Company remains in the fortunate position wherein the profits from the Cobre operation continue to fund overheads and contribute, albeit at a lower level, to project development. Further, as 100% owners, the Company can dictate the pace of progress on each project, as holding costs on each are relatively minor."

For further information, please contact:




Strategic Minerals plc

+61 (0) 414 727 965

John Peters


Managing Director


Website: www.strategicminerals.net


Email: [email protected]




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


Lindsay Mair


 

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 in Cornwall. 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 limited production in April 2019, with full production expected in 2020.

 


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 [email protected] or visit www.rns.com.
 
END
 
 
MSCUOVWRKNAKURR

Quick facts: Strategic Minerals PLC

Price: 0.566

Market: AIM
Market Cap: £8.31 m
Follow

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

The rare earths they call strategic minerals

Rare earths analyst Christopher Ecclestone talks us through the growing global demand for this specific suite of 11 minerals needed for magnets, EVs and wind turbines. Chris explains how China's creeping dominance in the space is worth tracking and what investors should keep an eye out for...

on 1/10/19