Strategic Minerals, the AIM and US OTC-listed mineral exploration and production company, has signed a definitive agreement to sell Leigh Creek Copper Mine Pty in South Australia to South Pacific Mineral Investments, trading as Cuprum Metals.
Completion remains subject to conditions, including approval from Australia's Foreign Investment Review Board.
Cash consideration totals A$750,000, of which A$500,000 sits in escrow pending regulatory clearance, following earlier payments of A$100,000 in June 2025 and A$150,000 on exercise of a call option in December 2025.
Strategic Minerals has trimmed the upfront cash portion of the deal in exchange for a 2% net smelter royalty on the first 24,900 tonnes of copper production, which Cuprum can buy out at 1% for A$1.5 million, a change the company attributes to copper prices reaching record highs and improving project economics.
Share consideration of up to A$3 million will come via shares in a new Cuprum entity targeting a listing, equal to up to 19.9% of its capital; any shortfall against that value after three years rolls into earn-out payments.
Earn-outs from commercial production add a further 20% of half-yearly operating cash flow, capped at A$4 million.
"The structure of the sale is highly commercial for the Company, combining upfront cash with ongoing copper exposure through layered consideration," said Mark Burnett, Executive Director.
All proceeds will fund continued advancement of the Redmoor Tungsten-Tin-Copper Project in southeast Cornwall, the company's stated strategic focus.
