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Strategic Minerals to seek ASX listing for Leigh Creek within a year

Debt funding of A$10mln is being sought to get the mine into production

Strategic Minerals PLC -

Strategic Minerals PLC (LON:SML) said it wants to list its Leigh Creek copper project (LCCM) on the Australian Stock Exchange within a year.

Ahead of that, it is looking to raise A$10mln in debt funding to bring the Australian prospect into production in the second half of 2021.

Aetas Global Capital has been appointed to help with the funding, which Strategic Minerals said preferably would be through debt at the LCCM level.

The miner said the Australian Department of Mines (DEM) has also indicated it will finalise its environmental assessment of the Paltridge North deposit at Leigh Creek in July.

Money raised will help prepare Paltridge North for production and also for the ASX listing, which Aetas recommended should be within 12 months to ensure the greatest flexibility to obtain funding, 

Strategic added that it wants to take advantage of the recent strength of the copper price, which had substantially enhanced the projected returns at LCCM.

Net present value had risen by 66% to US$44.5mln with copper at the current US$4 per pound compared to a year ago when copper was US$3 per lb.

John Peters, managing director, added: "Sensitivity analysis for LCCM clearly demonstrates the expected, significant returns from the project.

“The use of the funds to undertake production and new exploration, continue to de-risk LCCM and further enhance its future prospects.

"The planned undertaking of an ASX listing for a South Australian Copper project seeks to further secure the overall position of the parent company. "

Strategic added that in anticipation of DEM environmental approval it has appointed John Speck as Mine Manager for LCCM. 

Speck's career in the mining industry spans over 25 years in commodities that include copper, gold, iron ore and nickel.

He starts work in the first week of July and Strategic said the timing reflects its confidence that LCCM will be in production in the second half of 2021 and the funding will be successful.

Quick facts: Strategic Minerals PLC

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