Viana do Bolo, Valdeorras and a large part of the inhabitants of eastern Orense did not hesitate to take to the streets to demonstrate their rejection of the closure of the first coltan mine in Galicia, the Penouta mine located in Viana do Bolo.

A judicial paralysis which had serious consequences on property, Strategic minerals, encrypt the losses of 15 million euros. A fact which led him to sign a “business combination” with the Canadian IberAmerican Lithium.

This agreement It will come into force once approved by the general meeting of shareholders in May. and this means that each shareholder of the mine will have the right to receive one Iberian share for every seven strategic shares they own.

“After reviewing and considering, among other things, the company's current financial condition, future payments, financing alternatives and other transactions, Strategic's board of directors has unanimously approved the agreement of business consolidation”, says the owner of the Penota mine. to “understand that it is for the benefit of Strategic”, underlines the titular company which will occupy three positions on the board of directors of IberAmerican Lithium.

Iber and Strategic are working to close the proposed transaction in June 2024. Upon completion of the transaction, the company is expected to delist from Cboe Canada and request to cease being an issuer subject to applicable securities laws in Canada.

Losses

It is good to remember that The Penouta mine was forced to stop its activity following the judgment of the Superior Court of Xustiza of Galicia, which requested this remedy following a complaint from the Ecoloxistas en Acción group, which considers that this activity has a serious impact on the protected area of ​​Peña Trevinca.

After the presentation of the accounts, Strategic minerals emphasized that his losses amounted to 15.6 million euros in 2023. During the months of October and November, with the closure of the mine, more than 13 million euros were lost.

“The Board of Directors has decided that the best solution for the Company is to complete the announced business combination with IberAmerican Lithium. This will provide the financial stability necessary for Strategic Minerals' continued operations in Penouta and will also allow shareholders to access lithium exploration opportunities in the deposit,” underlined the CEO of Strategic minerals.

Overview

In addition, the company ensures that They are working to appeal the TSXG decision in order to resumption of operations at the Penouta mineand intends raise the necessary funds by issuing equity or debt to cover capital costs incurred while awaiting the decision on the main proceedings.

Once the decision has been made, and provided that the company can raise the necessary funds, it is specified that will focus on optimizing its operations by increasing production to reduce unit costss, the reinvestment of profits to achieve organic and sustainable growth, and the search for new external financing opportunities.

To achieve the above, the the company has developed a strategic plan which is based on operational improvements to accelerate recovery and increase productivity as well as optimization of energy consumption. This will include improvements to machinery and equipment, which will enable Strategic Minerals installs backup equipment in certain critical areas to minimize disruption in the production process and configure sub-process systems using backup equipment, thereby reducing downtime and operational inefficiencies resulting from mechanical and equipment failures.

The Penouta mine It is currently the only mine producing tantalum and niobium in Europe.

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