4th Mar 2014 13:10
LONDON (Alliance News) - Strategic Minerals PLC Tuesday said its subsidiary Southern Minerals Group LLC has entered into a new agreement with Freeport-McMoRan Sales Company Inc to extend its rights at the Cobre magnetite stockpile in New Mexico.
The company said the agreement provides for Freeport, part of global mining giant Freeport-McMoRan Copper & Gold Inc, to remove 11,000 short wet tonnes of magnetite per month by truck from the Cobre site at a price of USD9 per short wet tonne, a 50% reduction on the price of its prior agreement.
The magnetite iron-ore producer and exploration company with operations in the US said the new agreement replaces the existing agreement which was due to expire in April.
Strategic Minerals noted that moving forward it plans to focus on the US domestic market after a sharp decline in iron prices which is expected to last through 2014.
However, the company said its US domestic revenues in 2013 fell to USD1.0 million from USD1.6 million in 2012.
The news comes weeks after Strategic Minerals Chief Executive Officer Paul Harrison resigned, following attempts by two minority shareholders to oust him in January.
Minority shareholders Lenark PTY Ltd and Kifco PTY Ltd, which own a combined 5.67% stake in the company, called for a general meeting at which they were going to try and oust Harrison, Chairman James Fyfe, Non-Executive Director Peter Stephens and Finance Director David Anderson.
However, following the resignation of Harrison and others, the minority shareholders withdrawn their request to convene a general meeting.
Stategic Minerals shares were down 3.2% to 1.36 pence Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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