Strategic Minerals Sells Leigh Creek Copper Mine to Cuprum Metals

Strategic Minerals plc signed a definitive agreement to sell the Leigh Creek Copper Mine in South Australia to South Pacific Mineral Investments Pty Ltd, which trades as Cuprum Metals. The transaction includes A$750,000 in cash payments, with A$500,000 currently held in escrow.

Additional consideration for the deal includes up to A$3,000,000 in shares of a new company Cuprum intends to list, representing up to 19.9% of its ordinary share capital. The agreement also establishes a 2% net smelter royalty on the first 24,900 tonnes of copper production and earn-out payments of 20% of half-yearly operating cash flows up to A$4,000,000.

The sale remains subject to approval from the Australian Foreign Investment Review Board. Strategic Minerals plans to use the proceeds to fund its Redmoor Tungsten-Tin-Copper Project in Cornwall, England. Executive Director Mark Burnett described the sale as "a non-dilutive source of funding for our shareholders," while Cuprum Director Matthew Salthouse called the acquisition "a key milestone event."