Strategic Minerals (SML) is to increase its ownership in the UK Redmoor Tin / Tungsten project to 50% after entering a shareholders’ agreement with New Age Exploration (NAE) and Cornwall Resources (CRL).
This project is located between the village of Kelly Bray and the small town of Callington in south-east Cornwall, nearly 25km from city and port of Plymouth.
SML will formally exercise its option to acquire a further 248,864 shares in CRL at £3.39 each on 31 January 2017, reaching a 50% interest.
Strategic Minerals managing director John Peters said: “We are pleased to report on further progress being made towards bringing the Redmoor Tin/Tungsten project into production. The company has managed its operations and cash-flows well and has minimised shareholder dilution, whilst continuing to add value to its portfolio of projects.
“We are confident that the 2017 drilling programme at the Redmoor Tin / Tungsten project will move Cornwall Resources Limited closer to the development of an operating mine at Kelly Brae and that this programme can be undertaken professionally within time and cost parameters.
“We look forward to confirming the issuance of shares in Cornwall Resources Limited to Strategic Minerals and, following this, the awarding of the contracts by CRL for the drilling programme.”
Under the agreement, CRL will receive more than £800,000 after SML exercises certain options.
Funds will be used in the two phase drilling programme at the project scheduled around Kelly Brae area in Cornwall.
The aim of this drilling programme is to increase the current 2.3Mt high-grade Inferred Resource by two to three times and assist in procuring valuable information to develop the mine plan.