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Strategic Minerals completes first stage of Cornish tin investment

Published: 18:44 11 Jul 2016 AEST

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The Cornish site is a tungsten and tin project

Strategic Minerals PLC (LON:SML) has kicked off the process of buying a 50% stake in a tin/tungsten project in Cornwall, UK.

As previously reported, it is set to acquire a stake in NAE Resources (UK) Ltd, otherwise known as Redmoor, from Aussie firm New Age Exploration Ltd.

Strategic has now bought 30,973 Redmoor shares at £3.39 per share,  or around  9% of the issued capital of Redmoor, for £104,998.47.

John Peters, Strategic's managing director, said: " The company's purchase of shares in Redmoor, and the issue of the company's shares to New Age Exploration, completes the first component of the company's plan to acquire a 50% interest in Redmoor.

"The remainder of the acquisition will be completed through the option it now has, until 31 December 2016, to subscribe for another 278,864 Redmoor shares."

As part of the deal, Strategic also today issued 10mln shares to NAE at 0.3 pence a share, for a total of £30,000.

Last month, Strategic brought in £429,000 to fund exploration at the Hanns Camp site in Australia and move forward with the Cornish tungsten project.

Shares were issued at 0.3p.

Peter said today: "The company's June raising, and the feedback its director's received in relation to the project and the ability of the company to fund this prior to the maturity of the option, provide the board with confidence that it can complete the 50% acquisition prior to 31 December 2016.

"Further, the board is confident it can, in agreement with NAE, finalise and commence the land access and approvals to commence drilling in the first half of 2017."

Shares eased 4.55% to 0.315p in early deals.

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