Strategic Minerals (AIM:SML), the AIM and USOTC-listed mineral exploration and production company, said its wholly owned subsidiary Southern Minerals Group has extended access to the Cobre magnetite stockpile in New Mexico to 31 March 2031.
The extension adds two years to the previous agreement, which ran to 31 March 2029, and was formalised through a third amendment to the existing Magnetite Sales Contract, with all other terms unchanged.
Cobre has been in production since 2012 and has provided the company with a sustained revenue stream since Strategic Minerals acquired the distribution rights in September 2011.
The extended access underpins the company's June commitment to long-term site operations under the lease and further capital investment in mining equipment.
"The extension of access to Cobre through to March 2031 provides further certainty around an important source of internal cash flow for the Company," said Mark Burnett, Executive Director.
He added that the cash flow supports operating costs and "the advancement of our flagship Redmoor tungsten tin copper project."
The Redmoor project has also been in focus following the company's September agreement to sell the Leigh Creek Copper Mine in South Australia to Cuprum Metals, a deal structured with upfront cash plus shares, royalties and an earn-out, with proceeds earmarked for Redmoor's advancement.
News Intelligence what this means for the company
Strategic Minerals has extended its access to the Cobre magnetite stockpile in New Mexico by two years to 31 March 2031, securing continued revenue from an asset in production since 2012. The extension formalizes what management frames as underpinning long-term site operations and capital investment, while the cash flow from Cobre is explicitly tied to funding the company's flagship Redmoor tungsten-tin-copper project—a dependency that underscores how material this stockpile remains to the company's near-term financing.
The extension removes near-term uncertainty around a stated source of internal cash flow, but does not alter the company's fundamental dependence on Redmoor advancement and external capital to drive shareholder value. Cobre remains a cash-generative asset supporting operations, not a growth driver.
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