Strategic Minerals Plc has agreed to buy the Leigh Creek copper mine in South Australia from Resilience Mining Australia Pty. Ltd.

The company said Oct. 16 that it signed a binding term sheet to acquire Leigh Creek Copper Mine Pty. Ltd., which owns the mine, the exploration and mining rights and associated copper processing assets.

Strategic has until Dec. 14 to conduct due diligence. The company will also provide an interest-free A$500,000 loan to Leigh Creek Copper Mine.

Upon exercise of the option, Strategic will grant a 20% sales royalty to Resilience Mining, capped at A$3.65 million, and subscribe to A$1 million of Leigh Creek Copper Mine shares.

The project requires a capital investment of A$1.8 million to restart mining and has an initial life of three years.