Strategic Minerals PLC Acquisition of Central Australia Rare Earths (2635E)
May 05 2017 - 2:01AM
UK Regulatory
TIDMSML
RNS Number : 2635E
Strategic Minerals PLC
05 May 2017
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
5 May 2017
Strategic Minerals plc
("Strategic Minerals" or the "Company" or "SML")
Acquisition of 100% of Central Australia Rare Earths Pty Ltd
Strategic Minerals PLC (AIM: SML; USOTC; SMCDY), the diversified
mineral production and development company, is pleased to announce
that Rarus Limited ("Rarus"), its joint venture partner in Central
Australia Rare Earths Pty Ltd ("CARE"), has agreed to sell its
remaining shares in CARE to SML for GBP522,500 to be provided by
Rarus subscribing for 19,000,000 new shares in Strategic Minerals
plc issued at GBP0.0275 per share. The transaction is to be
completed prior to 1 June 2017.
While CARE will become a 100% subsidiary of SML, Andrew Spinks,
the geologist associated with Rarus, has agreed to continued
involvement in CARE's various projects through the provision of
strategic professional advice, at market rates.
Shareholders are advised that Strategic Minerals Chairman, Alan
Broome, is also a Non-Executive Director of Rarus and a director of
CARE (representing SML's interests) and that, after making the
Board of Strategic Minerals aware of the CARE opportunity, he
excused himself from any further dealings with the acquisition.
Commenting, John Peters, Managing Director of Strategic
Minerals, said:
"Under existing arrangements, SML was due to move to a 75%
ownership of CARE. However, it has become clear that to fully
explore the resource potential indicated in CARE's tenements,
larger amounts of funding would be required.
While the profitability of operations at our Cobre plant in New
Mexico, USA has provided SML the capacity to provide such funding,
Rarus may have struggled to source suitable funding in the
timeframe SML envisaged for the project. Accordingly, SML was not
prepared to expand the exploration scope while not in full control
of the project's expected timeline.
The decision to acquire the balance of the project was a
mutually acceptable one for both SML and Rarus and the continued
involvement of Andrew Spinks was considered crucial to SML assuming
outright responsibility for the development projects.
Before the end of the June quarter, SML intends to update the
market on its development plans in relation to the CARE
tenements."
For further information, please contact:
Strategic Minerals plc
John Peters
Managing Director
www.strategicminerals.net
Follow Strategic Minerals on:
Twitter: @SML_Minerals
LinkedIn: www.linkedin.com/company/strategic-minerals-plc +61 (0) 414 727 965
SP Angel Corporate Finance LLP
Nominated Adviser and Joint
Broker
Ewan Leggat +44 (0)20 3470 0470
Optiva Securities Limited
Joint Broker
Graeme Dickson +44 (0)20 3411 1880
Yellow Jersey PR
Financial PR
Felicity Winkles
Alistair de Kare-Silver
Joe Burgess +44 (0)7825 916 715
Notes to Editors
Strategic Minerals Plc is an AIM-quoted, diversified mineral
development and production company with projects in the United
States of America, the UK and Australia. The Company is focused on
acquiring and developing cash generative, high quality projects
which meet local market demand for commodities and utilising this
cash flow to undertake value added exploration.
In September 2011, Strategic Minerals purchased its first cash
generating asset; the Cobre magnetite tailings dam project in New
Mexico, USA which it brought into production in 2012 and which
continues to provide a revenue stream for the Company. The
portfolio was expanded in January 2016 with the acquisition of
shares in Central Australian Rare Earths Pty Ltd, which holds
tenements in Western Australia and the Northern Territory that are
prospective for cobalt, gold, nickel sulphides and rare earths. In
May 2016, an additional exploration asset was acquired when the
company entered into an agreement with New Age Exploration Limited
to acquire up to 50% of the Redmoor Tin/Tungsten project in
Cornwall, UK. This 50% acquisition has now been completed and
drilling at the project has commenced.
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQOKQDNDBKBBPK
(END) Dow Jones Newswires
May 05, 2017 02:01 ET (06:01 GMT)
Strategic Minerals (LSE:SML)
Historical Stock Chart
From Sep 2024 to Oct 2024
Strategic Minerals (LSE:SML)
Historical Stock Chart
From Oct 2023 to Oct 2024