Business
Terms renegotiated on Leigh Creek acquisition
Terms renegotiated on Leigh Creek acquisition.
About this update from Strategic Minerals Plc
[{"type":"text","content":"\n \nRNS Number : 4362Z Strategic Minerals PLC 15 December 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 \n15 December 2017\n \nStrategic Minerals plc\n(\"Strategic Minerals\", \"SML\" or the \"Company\")\n \n \nTerms renegotiated to acquire Leigh Creek Copper Mine outright for AUD $3m\n \nStrategic Minerals plc (AIM: SML; USOTC: SMCDY), a diversified mineral production and development company, announces that after the successful completion of technical and financial due diligence on Leigh Creek Copper Mine Pty Ltd (\"LCCM\"), the owner of the exploration and mining rights and associated copper processing assets at Leigh Creek Copper Mine in South Australia (the \"Project\"), it has agreed to continue with the acquisition on renegotiated terms. \nIn its RNS dated 16 October 2017, Strategic Minerals outlined that it intended to pay a total consideration of AUD 5,000,000 (approximately GBP 2,850,000) predominantly by way of royalties in combination with cash, shares and assumption of debt. \nUpon completion of due diligence, SML has renegotiated terms for the acquisition of LCCM through an equal mixture of cash and equity totalling AUD 3,000,000 (approximately GBP1,710,000), subject to documentation.\nTransaction Details\nSubject to finalising legal documentation and receiving legal due diligence sign off (expected to be received by the end of 2017), SML has agreed to purchase LCCM from Resilience Mining Australia Pty Ltd (\"RMA\") on 16 January 2018 for a total consideration of AUD $3,000,000 (approximately GBP 1,710,000) to be paid by way of AUD $1,500,000 (approximately GBP 855,000) in cash, payable at settlement, and AUD $1,500,000 (approximately GBP 855,000) paid by way of the issue of new ordinary shares of SML (\"Shares\") in the first week of April 2018, based on the volume weighted average share price (\"VWAP\") for the month of March 2018.\nShares issued will be subject to a voluntary escrow, with one third being escrowed for three months after issue, and another third being escrowed for six months after issue. Should SML fail to deliver RMA the Shares by the end of April 2018,...