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Strategic Minerals says initial payment date for Cornwall Resources shareholding acquisition deferred to 27 June

The AIM-listed firm said the deferral agreed with New Age Exploration Limited (NAE) is to allow for the expected receipt of the funds from Cobre's major client, as previously announced
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It added that all other terms remain unchanged except that it has agreed to pay NAE a postponement fee of A$10,000

Strategic Minerals PLC (LON:SML) has signed a Deed of Variation with New Age Exploration Limited (NAE) to defer the initial payment date for the acquisition of NAE's 50% shareholding in Cornwall Resources Limited (CRL) from 30 May 2019 to 27 June 2019. 

The AIM-listed producing mineral company, which is actively developing projects prospective for battery materials, said the deferral is to allow for the expected receipt of the funds from Cobre's major client, referred to in the company's announcement on 24 May 2019. 

READ: Strategic Minerals says unit reaches agreement with major client at Cobre in relation to arrears to date and payments

The firm added that all other terms remain unchanged except that, in consideration for NAE agreeing to these arrangements, it has agreed to pay NAE a postponement fee of A$10,000.

John Peters, Strategic Minerals’ managing director commented: "The deferral of the settlement date for the acquisition of the balance of CRL shares allows the Company to match expected cash flows within the SML group. 

“We thank NAE for working with us in this regard and this agreement reflects the close relationship developed over the past few years.”

Strategic Minerals said last week that its wholly-owned subsidiary, Southern Minerals Group (SMG) had reached an agreement with its major client at Cobre in relation to arrears to date and payments going forward, leading to the potential receipt of US$4.065mln within two weeks.

It added that the client had informed SMG that it anticipates having significant funds very shortly and asked it to refrain from progressing legal action for two weeks.

During this period, the company said, major client has agreed to pay arrears of US$375,000 and top up the existing deposit, held by SMG, by US$3,690,000.

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