Strategic Minerals jumps as major client agrees to pay arrears
Strategic Minerals shares leapt on Friday after the company said it will potentially receive $4.065m within two weeks after it reached an agreement with its major client at the Cobre magnetite project in New Mexico in relation to arrears to date and payments going forward.
FTSE AIM All-Share
724.03
12:15 19/11/24
Industrial Engineering
11,872.88
12:14 19/11/24
Strategic Minerals
0.20p
11:39 19/11/24
The agreement, which was reached through the AIM -listed company's wholly-owned subsidiary, Southern Minerals Group, came after the major unnamed client informed SMG that it expects to have significant funds very shortly and therefore requested that SMG refrain from progressing legal action for two weeks.
Consequently, the client has agreed to pay arrears of $0.375m and top up the existing deposit held by SMG by $3.69m within the next fortnight.
Strategic Minerals said the client has also indicated that it wishes to negotiate the balance of the contract in June and has agreed to the increase in the deposit amount to reflect its good faith.
John Peters, managing director of Strategic Minerals, said: "SMG has now received written confirmation of the major client's intent to make payment of over $4m in the next two weeks which would place the SML group in an attractive position to advance its various projects."
Strategic Minerals shares were up 16.13% at 1.80p at 1030 BST.