Strategic Minerals confirms definitive sale terms for Leigh Creek copper mine
Aim-listed Strategic Minerals has garnered more approvals for the sale of its Leigh Creek copper mine, in South Australia, to South Pacific Mineral Investments - trading as Cuprum Metals.
The company signed a definitive agreement with Cuprum to sell the project for A$750000 in cash and A$3-million worth of Cuprum shares, as well as a net smelter return royalty of 2% for the first 24900 t of copper produced from the project.
"We are delighted to have reached final terms for the sale of Leigh Creek, which is a significant milestone allowing us to continue rationalising our portfolio around core assets for maximum value creation," says Strategic Minerals executive director Mark Burnett.
"The structure of the sale is highly commercial for the company, combining upfront cash with ongoing copper exposure through layered consideration comprising shares, royalties and earn-out.
"Proceeds from the transaction, a non-dilutive source of funding for our shareholders, will be used to further support the continued advancement of our flagship Redmoor tungsten/tin/copper project in south-east Cornwall.
"We have enjoyed working with the Cuprum team and are confident that Leigh Creek is in good hands going forward and on a fast-track path to cash flow," Burnett states.
In turn, Cuprum director Matthew Salthouse says taking 100% ownership and control of Leigh Creek is a key milestone event for Cuprum offering certainty in the development of a strong platform to advance project funding and recommissioning initiatives.
"We look forward to working closely with stakeholders as we progress these plans. Cuprum acknowledges the constructive cooperation from Strategic Minerals to execute this deal, and the ongoing support shown by our stakeholders," Salthouse concludes.
