, the AIM listed minerals company developing projects for battery materials, revealed it is to acquire 50% of Cornwall Resources Limited, the Joint Venture vehicle developing the Redmoor Tin/Tungsten project in Cornwall.
It will pay a total capped price of £2.66 million, subject to approval by New Age Exploration Limited shareholders at a general meeting. The acquisition will allow Strategic Minerals to take full control of the Redmoor project.
The payment for the project will take three parts, a £1.06m cash payment, a £0.54m promissory note payable 180 days after the settlement, and a royalty stream of 1.5% of Net Smelter Revenue from Redmoor, capped at £1.06m.
John Peters, Managing Director of Strategic Minerals, commented: "The recent resource upgrade has highlighted the potential world class nature of the Redmoor Tin/Tungsten project and has given the Board confidence to consolidate control.”
In February, the company reported a significant resource upgrade, with a 200% increase in contained metal.
John Peters added: “Taking full control of Redmoor provides a significant benefit to the Company as it allows it to, solely, set the timing of project developments and, hence, the potential need for cash flow.”
He told investors that while the company has sufficient cash resources to fund the acquisition, it is exploring non-dilutive funding alternatives with a select group of potential investors.
He said "The Company considers this Acquisition to be an exciting opportunity and, in conjunction with our team and local stakeholders, looks forward to the next phase of development for CRL. SML believes, such development will further demonstrate the potential size and scope of the project and its position in a global context."
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