Strategic Minerals (SML) 1.32p £20.55m
Strategic Minerals, a producing mineral company actively developing projects prospective for battery materials, notified the market that, further to the announcement dated 27 June 2019, it has settled the acquisition of New Age Exploration Limited's ("NAE") 50% holding in Cornwall Resources Limited ("CRL").
SML has settled the acquisition of NAE's 50% holding in CRL on the basis that, in lieu of the original structured cash components, SML made an initial A$0.29m payment, taking total cash paid to A$0.3m and agreeing an 11 month payment schedule for the balance of A$2.7m.
Payments of A$0.3m are to made quarterly before 31 Oct 2019, 31 Jan 2020 and 30 Apr 2020. The balance is then to be paid on or before 26 Jun 2020.
The interest rate on the balance of A$2.7m is 5% pa, calculated on a daily balance basis, payable at the end of each calendar quarter to allow for early repayment.
SML has provided NAE with a charge over the Company's shares in CRL, a debenture charge over CRL's property and, in the event of default, NAE has the option to convert any outstanding balances to SML shares at 90% of the VWAP for SML shares in the 10 trading days prior to the issue of the conversion notice.
Acquisition is completed upon the registration of charges.