Strategic Minerals' CEO buys new shares showing confidence in the troubled business

Strategic Minerals' chief executive bought 3m new shares in the mineral company showing confidence in the troubled business.

John Peters bought the shares for an individual price of 0.6p, spending a total of £18,000.

Following the transaction, Peters holds 8.7m shares in the group, which represent 0.98% of its issued share capital.

This is the second time this month Peters buys new shares in the company, where shares have been hit after investors interpreted an annual general meeting statement as meaning the company urgently needed to take on further projects to continue as a viable business.

"My purchase, at significantly above market, reflects my continued confidence in the Company, its ability to complete the Tatu project and the price at which the placing was carried out," he said.

The company was hurt by the collapse in the export price for iron ore in its Cobre operating hard, making international sales "uneconomic", it said at the time of its annual general meeting in the beggining of the month.

As a result, its profits were lower than previously expected and its whole structure has been downsized.

Despite corporate overheads being slashed 60% in the second half, the core Cobre iron ore project in New Mexico remained profitable but was "not sufficient to cover the company's total corporate overheads, which makes the addition of other projects imperative".

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Advanced Oncotherapy (AVO)
Director name: Mr Enrico Cipro Vanni
Amount purchased: 1,000,000 @ 7.90p
Value: £79,000

Micro Focus International (MCRO)
Director name: Mr Kevin Loosemore
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Strategic Minerals (SML)
Director name: Mr John Peters
Amount purchased: 3,000,000 @ 0.60p
Value: £18,000

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Director name: Mr Kevin Loosemore
Amount purchased: 1,283 @ 1,363.49p
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