Strategic Minerals plc has sold its Australian subsidiary, with the proceeds expected to advance the company’s Redmoor tin-tungsten-copper project in southeast Cornwall.
South Pacific Mineral Investments Pty Ltd, trading as Cuprum Metals, bought Leigh Creek Copper Mine Pty Ltd (LCCM) based in South Australia in a definitive cash, all-share and earn-out agreement.
The transaction remains subject to conditions and approval from the Australian Foreign Investment Review Board (FIRB).
As part of the agreement, Strategic said it had reduced the upfront cash payment in return for a net smelter royalty, providing future cash flows.
The final terms comprise A$750,000 cash (£399,000), of which A$500,000 (£266,000) is in escrow pending FIRB approval. The company received A$100,000 as a deposit in June 2025 and A$150,000 on exercise of a call option in December 2025.
Strategic will also receive new Cuprum shares up to a target value of A$3 million (£1.6m) equal to up to 19.9% of its ordinary share capital.
The NSR of 2% covers the first 24,900 tonnes of copper production, with Cuprum holding a 1% buy-out option for A$1.5m (£798,000).
Strategic will additionally receive earn-out payments, on start of commercial production, representing 20% of half-yearly operating cash flows, up to A$4m (£2m).
Executive director Mark Burnett said: “We are delighted to have reached final terms for the sale of LCCM, a significant milestone that allows us to continue rationalising Strategic Minerals’ portfolio around our core assets for maximum value creation.
“The structure of the sale is highly commercial for the company, combining upfront cash with ongoing copper exposure through layered consideration comprising shares, royalties and earn-out.
“We have enjoyed working with the Cuprum team and are confident that LCCM is in good hands going forward and on a fast-track path to cash flow.”