TIDMSML
RNS Number : 9881F
Strategic Minerals PLC
14 July 2023
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has
been incorporated into UK law by the European Union (Withdrawal)
Act 2018.
14 July 2023
Strategic Minerals plc
("Strategic Minerals" or the "Company")
Update on Projects
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a profitable
producing mineral company , is pleased to provide the following
update on the Company's projects.
Highlights
-- Cornwall Resources Limited ("CRL") continues to seek to
expand its mineral footprint in the resources rich Cornwall area
and expects to be able to report on progress in the second half of
the year.
-- CRL was recently notified that its comprehensive grant
application to the Cornwall and Isle of Scilly Council ("CIoS")
Shared Prosperity Fund had proven unsuccessful and is now, with
encouragement from CIoS, working on resubmitting a modified version
prior to the next application deadline (4 August 2023).
-- CRL has been negotiating with unrelated parties as a precursor to potential closer formalised relationships.
-- A presentation at Austmine's "Copper to the World" conference
in Adelaide, in May, has led to a further two parties exchanging
confidentiality agreements with the Company and accessing Leigh
Creek Copper Mine's ("LCCM") data room.
Cornwall Resources Limited ("CRL")
The CRL team has continued to advance the Redmoor project,
through completing the Deep Digital Cornwall ("DDC") data
collection component, work on the grant funding application,
re-logging and sampling of existing Redmoor drill core, progressing
negotiations for the expansion of mineral rights and additional
work programs.
The formal working period of DDC closed at the end of June, with
an event held at Camborne School of Mines ("CSM"), where CRL's
Senior Geologist, Rowan Thorne, presented the work to-date. Project
partners CSM, CRL and Cornish Lithium plc have ceased all new data
collection and have moved into a reporting and project closure
stage. This includes providing a copy of all datasets to CSM for
long term storage and public access.
In the remaining three months of DDC funding, CRL, with project
partners, will be compiling a case study of all data collected for
publication and presentation to interested parties. In addition,
CRL, in its own right, will be combining all datasets into a new
study of the geology and mineralisation potential of the entire
Redmoor project area, with the intention of highlighting potential
new target areas for further investigation and sampling.
As reported last quarter, CRL submitted an application to CIoS
for grant funds from CIoS's Shared Prosperity Fund to undertake the
planned development of the Redmoor project. Subsequently, a request
to provide additional information was received and replied to.
Despite early enthusiasm showed by CIoS and others, CRL was
recently informed that its application for a comprehensive grant
had been unsuccessful in this form. In light of feedback from the
Good Growth Team, supporting CIoS, CRL will be submitting a
modified grant application for the round of applications with a 4
August 2023 deadline.
Notwithstanding our recent application for a comprehensive
grant, the Company considers that , at some stage, the Redmoor
project is likely to benefit from Governmental funding given
it:
-- Falls within the UK Government's Critical Minerals Strategy;
-- Is anticipated to result in many well-paid jobs for decades in East Cornwall; and
-- East Cornwall being an area likely to benefit from the UK Government's "Levelling Up" policy.
Additionally, the Company is encouraged by recent developments
in the USA which indicate that the UK is expected to be classified
as a "domestic" source of some critical minerals, including
tungsten and tin. This may provide the opportunity for project
funding from the considerable amounts allocated to such
arrangements by the US government. CRL is actively monitoring and
pursuing potential funding from such sources and is encouraged by
the US Department of Defense's recent direction to suppliers to
source only non-Chinese/Russian tungsten in their products by 2027.
With China supplying 85% of world tungsten supplies, Russia
supplying 5% of world tungsten supplies and the US consuming 45% of
world tungsten supplies, there is a positive outlook for the
Redmoor project as a potential domestic source of tungsten.
CRL is in active discussions with various parties concerning
collaboration to progress the Redmoor project and is currently
working on creating and executing formal development arrangements,
at the asset level, in CRL. Additionally, there are, currently,
multiple groups accessing the Redmoor data room confidentially.
Prior to attendance at the Company's AGM on 18 July, the Board will
be visiting Cornwall to conduct a full review of CRL's operations
and prospects.
As part of CRL's preparation for grant funding, should this have
been made available, planning permission for an extended
exploration drilling campaign has already been approved by Cornwall
Council and supports the Redmoor project's readiness for future
exploration, subject to funding.
Leigh Creek Copper Mine
Following the withdrawal of the potential LCCM debt provider,
the Company has been revisiting parties that may have an equity
interest in the project and presented the project at Adelaide's
recent "Copper to the World" conference hosted by Austmine. This
particular presentation focussed on the mineral upside of the
existing sites and is available on the Company's website at:
https://www.strategicminerals.net/investors/presentations.html
.
As a result of the presentation and the Company's marketing
efforts, there are currently two parties with experience in the
copper and critical minerals sectors respectively that have
exchanged Confidentiality Agreements with the Company and are
actively examining the due diligence folder. While there is
currently no formal proposal, the nature of the entities (one a
copper focused ASX listed entity and the other the Australian
Critical Minerals arm of a major international energy company)
means the Board is optimistic for the development of some form of
arrangement, yet to be agreed.
As yet, there has been no correspondence from the South
Australia's Department of Energy and Mining ("DEM") in relation to
the Programme for Environmental Protection and Rehabilitation
("PEPR") lodged in December 2022. The Company's enquiries of DEM
have indicated that the Department was focussed on the clearance of
a large project and that LCCM's PEPR application was not
prioritised, especially as it related to works that would not be
undertaken until at least one year after re-commencement of
operations at Leigh Creek. Again, it is noted that this PEPR, for
the treatment of transitional ores, is not time critical.
Commenting, John Peters, Managing Director of Strategic
Minerals, said:
"The CRL team made a significant, credible submission for a
comprehensive grant which has given it valuable experience for its
pending modified grant application. To this end, engagement
continues with both Cornwall Council and other local stakeholders.
Recent encouraging discussions with various parties leave us
confident of progress at Redmoor in the second half of the year
including potential expansion of its mineral rights catchment
area.
"Feedback from the "Copper to the World" presentation has
sparked renewed interest in the Leigh Creek Copper Mine project
which the Company is actively following up on.
"The Board is currently in Cornwall reviewing CRL's planned
operations and looks forward to seeing shareholders at its upcoming
AGM."
For further information, please contact:
+61 (0) 414 727
Strategic Minerals plc 965
John Peters
Managing Director
Website: www.strategicminerals.net
Email: info@strategicminerals.net
Follow Strategic Minerals on:
Vox Markets: https://www.voxmarkets.co.uk/company/SML/
Twitter: @SML_Minerals
LinkedIn: https://www.linkedin.com/company/strategic-minerals-plc
+44 (0) 20 3470
SP Angel Corporate Finance LLP 0470
Nominated Adviser and Broker
Matthew Johnson
Ewan Leggat
Charlie Bouverat
Notes to Editors
Strategic Minerals plc is an AIM-quoted, profitable operating
minerals company actively developing projects tailored to materials
expected to benefit from strong demand in the future. It has an
operation in the United States of America along with development
projects in the UK and Australia. The Company is focused on
utilising its operating cash flows, along with capital raisings, to
develop high quality projects aimed at supplying the metals and
minerals likely to be highly demanded in the future.
In September 2011, Strategic Minerals acquired the distribution
rights to the Cobre magnetite tailings dam project in New Mexico,
USA, a cash-generating asset, which it brought into production in
2012 and which continues to provide a revenue stream for the
Company. This operating revenue stream is utilised to cover company
overheads and invest in development projects aimed at supplying the
metals and minerals likely to be highly demanded in the future.
In May 2016, the Company entered into an agreement with New Age
Exploration Limited and, in February 2017, acquired 50% of the
Redmoor Tin/Tungsten project in Cornwall, UK. The bulk of the funds
from the Company's investment were utilised to complete a drilling
programme that year. The drilling programme resulted in a
significant upgrade of the resource. This was followed in 2018 with
a 12-hole 2018 drilling programme has now been completed and the
resource update that resulted was announced in February 2019. In
March 2019, the Company entered into arrangements to acquire the
balance of the Redmoor Tin/Tungsten project which was settled on 24
July 2019 by way of a vendor loan which was fully repaid on 26
September 2020.
In March 2018, the Company completed the acquisition of the
Leigh Creek Copper Mine situated in the copper rich belt of South
Australia and brought the project temporarily into production in
April 2019. In July 2021, the project was granted a conditional
approval by the South Australian Government for a Program for
Environmental Protection and Rehabilitation (PEPR) in relation to
mining of its Paltridge North deposit and processing at the
Mountain of Light installation. In late September 2022, an updated
PEPR, addressing the conditions associated with the July 2021
approval, was approved.
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