Strategic Minerals* (SML LN) 1.725p, Mkt Cap £23.9m – Settlement date for acquisition of the balance of the Redmoor project.
Strategic Minerals has announced that its partner in the Redmoor tin/tungsten project, New Age Exploration (NAE) has advised it that “it will not be required to refer its decision to sell its entire 50% shareholding in Cornwall Resources Limited ("CRL"), the joint venture vehicle developing the Redmoor Tin/Tungsten project in Cornwall ("Redmoor"), to shareholders at a general meeting”.
As a result, the two companies have agreed that Strategic Minerals’ previously announced acquisition of NAE’s 50% share in the project will now be settled on 30th May 2019. “The settlement is subject to NAE confirming the form of both the promissory note and royalty stream, although this is considered largely an administrative process and not likely to delay settlement”.
Commenting on Strategic Minerals gaining full control of the Redmoor project, Managing Director, John Peters, confirmed that “The Company looks forward to developing Redmoor to Pre-Feasibility status, at which time it believes it can better demonstrate the project's underlying value to the market."
In February this year, the company announced an increased inferred mineral resource estimate for the project of 11.7mt at an average grade of 1.17% tin equivalent (0.17% tin, 0.56% tungsten trioxide and 0.50% copper) using a 0.45% tin equivalent cut-off grade.
Although the full lateral and depth extent of the Redmoor mineralisation has still to be established, we assume that at this stage pre-feasibility work will concentrate on the development potential of this 11.7mt resource with perhaps both infill drilling to upgrade at least a part of the inferred resources as well as further work to explore wider potential.
Speaking about the wider market interest in the project, Mr. Peters said that “Recent meetings with wholesale mining investment funds have highlighted the level of interest that the Redmoor Tin/Tungsten project has engendered”.
Conclusion: Securing outright ownership control of the Redmoor project will enable the company to move the project ahead on its own agenda, timetable and development plan without the need to accommodate the possible alternative approaches of a partner.
*SP Angel act as Nomad and broker to Strategic Minerals