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Strategic Minerals fund raise to support Leigh Creek, awaits overdue payment

"We remain in close contact with our Cobre client and believe payment may occur at any time,” said Alan Broome.

Leigh Creek mine
Leigh Creek is due to start-up in 2020

Strategic Minerals PLC (LON:SML) raised £890,000 of new capital with the issue of 63.5mln shares via a share placing.

The proceeds will be used primarily to close the purchase of shares in Cornwall Resources and to provide working capital for the Leigh Creek copper mine project.

Leigh Creek is expected to deliver significant cashflow following its anticipated restart in 2020.

Strategic Minerals also noted that the US$4.06mln owed to the company by the major Cobre client is imminent and could be received at any time.

READ: Strategic Minerals still awaiting overdue US$4mln payment

"We remain in close contact with our Cobre client and believe payment may occur at any time,” said Alan Broome, Strategic Minerals chairman.

“However, we are carefully preparing to progress a claim for substantial potential lost profits, should payment not be forthcoming in the near future."

Broome added: “This modest placing has been undertaken as we await the anticipated receipt of over US$4 million from the Cobre client.

“SML appreciates the continued backing of our largest shareholder, as well as from another large, existing investor.

“The remaining participants in the placing consisted of the Board and the wider SML team.

"The board considers all participants to the fund raise are likely to be long term shareholders cognisant of the expected future value of the company.

Quick facts: Strategic Minerals PLC

Price: 0.589 GBX

AIM:SML
Market: AIM
Market Cap: £8.64 m
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