- Resources company Strategic Minerals had named the former customer of its Cobre magnetite stockpile in Nevada against which it had taken legal action as CV Investments.

Strategic Minerals was recently awarded $21.9m in damages and costs against CV Investments, which counts Brenda Smith as its principal.

Strategic Minerals said it had become aware while preparing a breach notice against CV Investments that its assets had been frozen by the US Securities and Exchange Commission.

It also became aware at the time that Brenda Smith had been charged for running a Ponzi scheme in relation to her mutual funds operations, Strategic Minerals said.

Strategic Minerals said it had always undertaken its fiduciary duties and acted in the best interests of shareholders to maximise the residual value of the contract.

'Accordingly, it has kept the market informed to the extent permitted by its legal advice,' the company said.

'It is noted that, while the company has not been able to disclose the contract counterparty, it has cautioned the market on what assets, if any, would be capable of being recouped from the client.'

'Even now there is no clarity on the amount or timing SMG may expect associated with the SEC's request for the appointment of a receiver.'

Strategic Minerals managing director John Peters said CV Investments had caused the company 'considerable angst' but had also 'contributed meaningful funds'.

'While the board has been restrained until now in naming the counterparty, it should be noted that they have full confidence in the value of the company and have continued to invest in the company's shares throughout this period,' Peters said.

At 1:41pm: [LON:SML] Strategic Minerals PLC share price was -0.08p at 0.43p

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