LONDON, March 13, 2012 /CNW/ - Strategic Minerals Plc (AIM: SML), the magnetite focused iron ore producer and exploration company, is delighted to announce that it has entered into a commercial contract ("Contract") with a subsidiary of Glencore International PLC (LSE:GLEN), for the sale of iron ore concentrate from its Cobre Project in New Mexico, to Glencore AG.
Under the terms of the Contract, the total quantity of magnetite to be made available to Glencore from Strategic's Cobre Project is 800,000 wet metric tonnes ("WMTs"). Initial deliveries of up to 60,000WMTs under the Contract are scheduled to start from April, subject to the relevant standard freighting and performance related documentation being in place.
The start date coincides with the expected completion of the Cobre rail-spur upgrade this month. The rail-spur will allow the contracted magnetite to be transported by train to the Port of Guaymas in Mexico where it will be unloaded for shipping.
Steven Sanders, Chairman of Strategic Minerals, said:
"We are delighted to have entered into this long-term agreement with one of the world's leading commodity suppliers. It demonstrates not only the strength of our business model and our ability to acquire projects that can deliver shareholder value, but also the ability of our management to execute on those projects."
About Strategic Minerals
Strategic Minerals plc (AIM: SML) is developing a portfolio of projects that provide near term production along with those that potentially offer longer term capital gains. Strategic Minerals currently holds iron ore stockpile assets in North America and exploration properties in Australia.
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Strategic Minerals plc
Matthew Bonthrone/Alex Borrelli