11:00 Mon 23 Sep 2019
Strategic Minerals - Cobre Arbitration Claim
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.
("Strategic Minerals", "SML" or the "Company")
Cobre Arbitration Claim Lodged
The claim consists of three elements, namely:
1) in excess of
2) in excess of
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.
"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: |
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+61 (0) 414 727 965 |
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Managing Director |
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Website: www.strategicminerals.net |
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Email: info@strategicminerals.net |
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Follow Strategic Minerals on: |
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https://www.facebook.com/search/top/?q=strategic%20minerals%20plc |
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+44 (0) 20 3470 0470 |
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Nominated Adviser and Broker |
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Notes to Editors
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