Strategic Minerals accepts settlement offer over Cobre rail works

Diversified mineral development and production company Strategic Minerals announced on Thursday that it has accepted a settlement offer in relation to its claim over rail works for the Cobre Mine in the US.

The AIM-traded firm said the settlement totalled $0.675m, to be paid in instalments of $0.1m in August, $0.4m in January 2017 and $0.175m in June 2017.

“The settlement reflects management's belief that it had a valid claim in relation to rail access during the period it shipped magnetite internationally,” said Strategic Minerals managing director John Peters.

“As with any dispute, the process to arrive at the settlement has taken up considerable management and legal resources and I would like to acknowledge the work of our team on this.

“The result is excellent for the company providing it with ‘non-dilutive’ funds with which to complete its plans,” Peters added.