Signing of Shareholders Agreement
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
24 January 2017
Strategic Minerals plc
("Strategic Minerals" or the "Company" or "SML")
Signing of Shareholders Agreement to increase stake in the Redmoor Tin/Tungsten project to 50%
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), the diversified mineral development and production company, announces that it has entered into a shareholders agreement with New Age Exploration Limited ("NAE") and Cornwall Resources Limited ("CRL"), the joint venture vehicle operating the Redmoor Tin/Tungsten project ("the Project"), whereby Strategic Minerals has agreed to increase its stake in the Project to 50%.
SML has nominated 31 January 2017 as the date on which it will formally exercise its option to take up a further 248,864 shares in CRL at £3.39 per share. Once these shares are issued, expected to be in early February, SML and NAE will each possess 309,838 shares in CRL, which represents a 50% stake each in the joint venture vehicle.
The funds receivable by CRL pursuant to the option exercise by SML are in excess of £800,000. These funds will be applied to the two phase drilling program at the Project around Kelly Brae in Cornwall. Funds from SML's previous CRL share subscriptions have provided the working capital to drive the Project forwards, including a number of key appointments and the issuance of tenders for the 2017 drilling programme. The active management of both NAE and SML in this process has put the Project on track for commencement of drilling in 2017.
The aim of the drilling programme is to increase the current 2.3 Mt high grade Inferred Resource by a further two to three times and help to provide valuable information to assist in the preparation of a mine plan.
Commenting, John Peters, Managing Director of Strategic Minerals, 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."
For further information, please contact:
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Strategic Minerals plc John Peters Managing Director Follow Strategic Minerals on:
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+61 (0) 414 727 965 |
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SP Angel Corporate Finance LLP Nominated Adviser and Joint Broker Ewan Leggat Laura Harrison |
+44 (0)20 3470 0470 |
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Optiva Securities Limited Joint Broker Graeme Dickson
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+44 (0)20 3411 1880 |
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Yellow Jersey PR Financial PR Felicity Winkles Alistair de Kare-Silver Joe Burgess
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+44 (0)7825 916 715 |
Notes to Editors
Strategic Minerals Plc is an AIM-quoted, diversified mineral development and production company with projects in the United States of America, the UK and Australia. The Company is focused on acquiring and developing cash generative, high quality projects which meet local market demand for commodities and utilising this cash flow to undertake value added exploration.
In September 2011, Strategic Minerals purchased its first cash generating asset; the Cobre magnetite tailings dam project in New Mexico, USA which it brought into production in 2012 and which continues to provide a revenue stream for the Company. The portfolio was expanded in January 2016 with the acquisition of shares in Central Australian Rare Earths Pty Ltd, which holds tenements in Western Australia and the Northern Territory that are prospective for nickel sulphides, gold and rare earths. In May 2016, an additional exploration asset was acquired when the company entered into an agreement with New Age Exploration Limited to acquire up to 50% of the Redmoor Tin/Tungsten project in Cornwall, UK.
This information is provided by RNS
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