- Strategic Minerals said subsidiary Southern Minerals Group had reached an agreement with its major client at the Cobre plant in New Mexico, in relation to arrears to date and payments going forward.

The client had informed SMG that it anticipated having significant funds 'very shortly' and has asked SMG to refrain from progressing legal action for two weeks.

During the two week period, the client had agreed to pay arrears of $375k and top up an existing deposit, held by SMG, by $3.7m.

The client had also indicated that it wished to negotiate the balance of the contract during June, and had agreed to the increase in the deposit amount to reflect its good faith in that regard.

'SMG has now received written confirmation of the major client's intent to make payment of over $4m in the next two weeks which would place the SML group in an attractive position to advance its various projects,' chief executive John Peters said.

'The company will keep the market fully informed of further developments and of the receipt of funds.'

At 9:10am: [LON:SML] Strategic Minerals PLC share price was +0.2p at 1.75p

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