Strategic Minerals plc (AIM: SML; USOTC: SMCDF) has confirmed the completion of its sale of the Leigh Creek Copper Mine in South Australia to South Pacific Minerals Investments Pty Ltd, trading as Cuprum Metals, after receiving approval from Australia's Foreign Investment Review Board. The transaction, first announced on 3 September 2026, closes with A$500,000 previously held in escrow now released to the company. The layered consideration structure retains meaningful copper exposure for Strategic Minerals through equity, royalties and earn-out payments, with proceeds directed towards advancing the flagship Redmoor Tungsten-Copper-Tin Project in Cornwall.

Key Points

  • Strategic Minerals plc (AIM: SML; USOTC: SMCDF) is an AIM-quoted international mineral exploration and production company
  • The sale of Leigh Creek Copper Mine Pty Ltd to Cuprum Metals has now legally completed following FIRB approval
  • Total cash consideration is A$750,000; equity upside capped at A$3,000,000; earn-out payments capped at A$4,000,000; 2% Net Smelter Royalty on first 24,900 tonnes of copper produced
  • Investors should watch how proceeds accelerate drilling and development activity at the Redmoor Project in southeast Cornwall

Layered Consideration Gives Strategic Minerals Ongoing Copper Exposure from Leigh Creek

Beyond the total cash consideration of A$750,000, the transaction structure provides Strategic Minerals with up to 19.9% of ordinary shares in a new Cuprum listing on a recognised stock exchange, capped at A$3,000,000. Any shortfall below that value within three years is to be added to earn-out payments. The earn-out itself represents 20% of half-yearly operating cash flows from commercial production commencement, capped at A$4,000,000. Additionally, a 2% Net Smelter Royalty applies to the first 24,900 tonnes of copper produced, with Cuprum retaining a 1% buy-back option upon payment of A$1,500,000.

Redmoor Tungsten-Copper-Tin Project in Cornwall Remains Strategic Minerals' Primary Focus

The announcement confirms that proceeds from the Leigh Creek disposal will be directed towards the Redmoor Project, situated in the historically significant Tamar Valley Mining District in southeast Cornwall. Strategic Minerals completed its 100% acquisition of Cornwall Resources Limited and the Redmoor Project in 2019. A JORC (2012) compliant Inferred Mineral Resource Estimate published on 26 March 2026 defines a total inferred resource of 17.40 million tonnes at a net smelter return of US$324 per tonne, encompassing tungsten, tin, copper and silver grades across multiple domains.

Cuprum Metals Plans to Restart Leigh Creek and List on a Recognised Exchange

Matthew Salthouse, Director of Cuprum, stated in the announcement that the company intends to restart the Leigh Creek Copper Mine and views Strategic Minerals as a cornerstone investor going forward. The planned stock exchange listing of a new Cuprum vehicle underpins the equity component of the consideration structure, though the precise timing, exchange venue and listing value remain subject to Cuprum's own development plans. Investors in Strategic Minerals will therefore retain indirect exposure to Leigh Creek's copper production potential alongside the company's primary Redmoor development programme.

Cobre Magnetite Project in New Mexico Continues to Provide Operational Revenue

Separate from the Leigh Creek transaction and Redmoor development, Strategic Minerals holds distribution rights to the Cobre magnetite project in New Mexico, USA, through its wholly owned subsidiary Southern Minerals Group. The Cobre project has been in continuous production since 2012 and the announcement notes it continues to provide a sustainable revenue stream for the company, offering a degree of operational cash flow diversification while the Redmoor Project advances towards future development milestones.