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Strategic Minerals subsidiary gets extension to Cobre Mine access
Diversified mineral development and production company Strategic Minerals announced on Friday that its access to the Cobre magnetite stockpile in New Mexico has been extended to 31 March 2019.
The AIM-traded firm said its wholly-owned subsidiary Southern Minerals Group has an existing contract with the owner of the Cobre Mine for access to the magnetite stockpile, which was subject to an annual extension.
It said Southern Minerals had received confirmation from the Cobre Mine owner that the existing contract would roll over, providing guaranteed access until 31 March 2019.
In line with the contract, an automatic one-year extension would occur should the owner, prior to 28 February 2019, fail to notify Southern Minerals in writing of its intention to terminate the contract.
"We are delighted to have our access at Cobre extended until April 2019 considering our expectation that the strong sales achieved in 2017 will continue this year," said Strategic Minerals managing director John Peters.
"We have a good working relationship with the mine owner and, on this basis, it would suggest that the contract will ultimately continue to rollover until the entire stockpile is removed."
Peters explained that the expected Cobre sales and existing cash balances placed the company in a "strong position", from which it hoped to be able to internally fund exploration programmes at Hanns Camp/Mount Weld and Redmoor and provide capital to restart the Leigh Creek Copper Mine operations.
"The board believes that the contract extension augurs well for another important year for the company."