Business
LCCM Non-Binding Heads of Agreement
LCCM Non-Binding Heads of Agreement.
About this update from Strategic Minerals Plc
[{"type":"text","content":"\n\n \n \nThe 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.\n \n \n24 April 2025\n \nStrategic Minerals plc\n(\"Strategic Minerals\" or the \"Company\")\nNon-Binding Heads of Agreement to grant Option to Acquire Leigh Creek Copper Mine\n Strategic Minerals plc (AIM: SML; USOTC: SMCDF), an international mineral exploration and production company, is pleased to announce it has signed non-binding Heads of Agreement (\"HoA\") with Axis Mining & Minerals Pty Ltd (the \"Purchaser\") to grant the Purchaser a call option to acquire Leigh Creek Copper Mine Pty Ltd (\"LCCM\"), the Company's wholly owned subsidiary which owns the Leigh Creek Copper Project in South Australia (the \"Project\").\n \nShareholders should note that there can be no certainty at this stage given the non-binding nature of the HoA that any funds will be received by the Company pursuant to the HoA and that the Company will enter into a binding Call Option with the Purchaser.\n \nSummary:\n \n· The Purchaser will make a non-refundable payment to Strategic Minerals of A$100,000 within 30 days from 23 April (or such further period as may be agreed by the parties), for an exclusive call option to acquire 100% of LCCM (the \"Call Option\")\n \n· Under the Call Option, which will be exercisable for a period of six months (or such longer period as may be agreed by the parties), the Purchaser may elect to acquire 100% of LCCM for an initial payment to Strategic Minerals of A$1.9 million in cash\n \n· The Purchaser anticipates completing a listing on the Australian Securities Exchange upon which it will issue shares to Strategic Minerals equivalent to 19.9% of the listed vehicle up to a maximum value limit of A$3 million*\n \n· The Purchaser will pay an earn-out to Strategic Minerals equivalent to A$4 million (\"Earn-Out Consideration\") to be paid on a half yearly basis from the commencement of commercial production at the Project with each half yearly payment to be the equivalent of 20% of net free cash flows from the...