2nd Jul 2015 07:14
LONDON (Alliance News) - Strategic Minerals PLC shares fell on Thursday morning after the company said buying more projects is "imperative" as the Cobre mine in New Mexico is not sufficient to cover its overheads.
In a statement set to be given at its annual general meeting, Managing Director John Peters said that while the Cobre mine remains profitable, this is not sufficient to meet its corporate overheads.
As a result, adding further projects to its portfolio will be "imperative", he said.
"In reviewing possible acquisitions, the board consider that there is potential to acquire small sized projects, with near term cash flows, servicing local markets and to bring a number of these together with the vision of positioning Strategic Minerals in two to three years as a profitable operating mining company," said Peters.
Shares in the company were down 14% to 0.45 pence in early trade, one of the worst performers in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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