Business
Substantial New Client at Cobre
Substantial New Client at Cobre.
About this update from Strategic Minerals Plc
[{"type":"text","content":"\n \nRNS Number : 2835Z Strategic Minerals PLC 13 March 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 \n13 March 2017\n \nStrategic Minerals plc\n(\"Strategic Minerals\" or the \"Company\" or \"SML\")\n \nSubstantial New Client at Cobre\n \nStrategic Minerals PLC (AIM: SML; USOTC; SMCDY), the diversified mineral production and development company, is pleased to announce that its subsidiary Southern Minerals Group (\"SMG\"), the operator of the Cobre magnetite stockpile, signed a contract on Friday 10 March with a private company, Galvin Investment Company (\"GIC\") for the sale of up to 350,000 tons of magnetite at a market based price over several years, subject to availability. Before the contract becomes effective, GIC must provide a US $100,000 Letter of Credit from an acceptable bank. The contract calls for a minimum purchase of 2,000 tons per month and logistics at the mine site would result in a maximum supply, above existing client demand, of 6,000 tons per month. This would effectively double annual sales from Cobre, which is likely to be achieved without affecting SMG's effective net profit margin of between 40% to 45% of sales revenue. The contract will terminate if, at any time, SMG loses access to the magnetite stockpile.\n \nCommenting, John Peters, Managing Director of Strategic Minerals, said:\n \n\"While we are delighted with the prospect of undertaking this contract with Galvin Investment Company, the Board wishes to emphasise the need to temper expectations and for caution to be applied until the security Letter of Credit is provided and sales commence. This process may take up to 30 days before the contract would effectively commence. We will update the market as soon as the contract comes into effect.\"\n \nFor further information, please contact:\n \n\n\n\n\nStrategic Minerals plc\nJohn Peters\nManaging Director\nwww.strategicminerals.net\nFollow Strategic Minerals on:\nTwitter: @SML_Minerals  ...