Business
Cobre Magnetite Operations Update
Cobre Magnetite Operations Update.
About this update from Strategic Minerals Plc
[{"type":"text","content":"\n \nRNS Number : 0250H Strategic Minerals PLC 02 June 2017 \n\nMarket Abuse Regulation (MAR) Disclosure\nCertain 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.\n \n2 June 2017\n \nStrategic Minerals plc\n(\"Strategic Minerals\" or the \"Company\" or \"SML\")\n \nCobre Magnetite Operations Update\n \nStrategic Minerals PLC (AIM: SML; USOTC; SMCDY), the diversified mineral production and development company, announces that its wholly owned subsidiary Southern Minerals Group (\"SMG\") has received the final payment of US$175,000 due under its rail settlement agreement with the rail provider at the Cobre magnetite tailings operation ('Cobre'), New Mexico, USA and has confirmed and commenced its substantial new contract to supply a minimum of 4,000 tons of magnetite per month.\n \nThe receipt yesterday of US$175,000, in relation to the rail settlement reached in July 2016, completes the balance of the US$675,000 due under the agreement. \n \nAs reported on 10 April 2017, SMG contracted with a substantial new client to supply a minimum of 4,000 tons of magnetite per month (minimum 48,000 tons in a full year). This client has, in addition to lodging a US$250,000 deposit, now confirmed and commenced the contract. Both SMG and the client have worked closely to deliver this result and the level of co-operation shown by both sides augurs well for the term of the contract.\n \nCommenting, John Peters, Managing Director of Strategic Minerals, said: \n\"The commencement of the new contract at Cobre provides the potential to double our existing record breaking sales performance and sets the Company on a profitable course for the years ahead. By underwriting an additional minimum 4,000 tons per month and with this likely to improve our existing profit margins at Cobre, the cash and profitability of the overall Strategic Minerals group appears strong and improving.\n \n\"The commencement of the new contract at Cobre, combined with the receipt of the final payment due under the...