Strategic Minerals PLC (LON:SML)(USOTC:SMCDY) has not yet received a US$4mln payment that was due on 7 June 2019 from a buyer of material from the company’s Cobre magnetite operation in the USA.
The client has been keeping Strategic Minerals informed of procedural delays to its funding lines and continues to indicate that payment is imminent. However, despite the client's assurances, Strategic Minerals now considers that it is in the best interests of shareholders to prepare a claim against the client which is likely to seek damages in excess of the amounts due.
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"The company is hopeful that a non-litigious solution can be reached with the major Cobre client,” said John Peters, managing director of Strategic Minerals.
“However, in the best interests of shareholders, the board has agreed to prepare a claim in relation to potential lost profits associated with the balance of sales due under the contract. It is expected that this claim will be served shortly, and the company will keep the market apprised of developments in respect of this claim."