Strategic Minerals PLC (AIM:SML) has pencilled in a start date of the first quarter 2022 for its Leigh Creek copper project after discussions with the mines department of South Australia (DEM).
This will be subject to the receipt of a permit from the DEM and also finance being arranged, said SML.
The DEM has given conditional approval, but asked for additional information about the intended management of potentially acid-forming material, the cover design and visual amenity associated with the Paltridge North waste rock dumps and heap leach pads, said SML.
On financing, discussions are underway over a US$10mln loan facility with a global bank, which is undertaking due diligence currently.
John Peters, SML’s managing director, said: "The company is encouraged by the support shown by the Department of Energy and Mines for mining and processing the Paltridge North deposit.
"All efforts are being undertaken to get operations restarted as soon as possible at Mountain of Light, Leigh Creek.
However, the need to meet additional DEM requirements and the impact of the pandemic have been contributing factors to progressing the recommencement of production.
"The company expects that the due diligence being undertaken by a respected global bank will lead to a Letter of Offer for a minimum US$10m loan facility.
"Such funding, if concluded, would not only permit the company to recommence mining operations at LCCM but, also, provide funds for exploration and expected ASX listing costs.”