Strategic Minerals PLC (AIM:SML) told investors it has secured another two years of access to the Cobre magnetite stockpile in New Mexico, extending an important source of internal cash flow through to 31 March 2031.
Wholly owned subsidiary Southern Minerals Group agreed the extension through a Third Amendment to the existing Magnetite Sales Contract. The previous agreement was due to expire in March 2029, while all other contractual terms remain unchanged.
The longer tenure also supports Strategic Minerals’ commitment to continued operations at Cobre and capital investment in new mining equipment announced in June.
Executive director Mark Burnett said the extension provides “further certainty around an important source of internal cash flow”, which will help cover operating costs and support advancement of the company’s flagship Redmoor tungsten-tin-copper project in Cornwall.
Cobre has been in production since 2012 and has continued to provide a revenue stream for Strategic Minerals.
