Strategic Minerals PLC (LSE:SML) has completed the sale of Leigh Creek Copper Mine Pty Ltd (LCCM) to South Pacific Minerals Investments Pty Ltd, trading as Cuprum Metals, following approval from Australia’s Foreign Investment Review Board (FIRB).
The transaction provides Strategic Minerals with an initial cash payment alongside potential future equity, royalty and earn-out proceeds, with funds intended to support development of its Redmoor Tungsten-Copper-Tin Project in Cornwall.
Sale Consideration and Payment Structure
Under the agreement announced on 3 September 2026, Strategic Minerals will receive total cash consideration of A$750,000, including A$500,000 previously held in escrow that has now been released.
The company is also entitled to receive up to 19.9% of the ordinary shares in a new company that Cuprum intends to list on a recognised stock exchange, with the equity consideration capped at A$3 million.
If the shares are not issued within three years or their value falls below A$3 million, the shortfall will be added to the earn-out payments.
Royalty and Future Production Payments
Strategic Minerals will retain a 2% net smelter royalty on the first 24,900 tonnes of copper produced at Leigh Creek.
Cuprum has the option to buy back one percentage point of that royalty for A$1.5 million.
The agreement also provides Strategic Minerals with 20% of half-yearly operating cash flows from the commencement of commercial production, subject to a cumulative earn-out limit of A$4 million.
These future payments remain dependent on the relevant production, cash flow and contractual conditions.
Redmoor Project Remains Priority
Strategic Minerals intends to direct proceeds from the Leigh Creek transaction towards advancing its Redmoor Tungsten-Copper-Tin Project in southeast Cornwall.
The completed sale transfers ownership of Leigh Creek to Cuprum while allowing Strategic Minerals to retain financial interests linked to the project’s future development and production.
Cuprum has indicated its intention to restart operations at Leigh Creek and progress the asset towards commercial production.
More About Strategic Minerals
Strategic Minerals PLC is an international mineral exploration and production company with interests in mineral projects. Its principal development focus is the Redmoor Tungsten-Copper-Tin Project in Cornwall, while the completed Leigh Creek disposal provides potential future payments linked to copper production.
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