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27 June 2019
Strategic Minerals plc
("Strategic Minerals", "SML" or the "Company")
Redmoor Acquisition Update
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a producing mineral company actively developing projects prospective for battery materials, announces that it has reached an in-principle agreement with New Age Exploration Limited ("NAE") on varying the terms of acquisition of its 50% holding in Cornwall Resources Limited ("CRL") and is in the process of finalising terms, which it expects to conclude shortly.
John Peters, Managing Director of Strategic Minerals, commented:
"The settlement arrangements for the acquisition of the remaining 50% of Cornwall Resources Limited, holder of the Redmoor Tin and Tungsten project, have been renegotiated in light of changes to the Company's expected cash flows and we look forward to closing shortly."
Notes to Editors
Strategic Minerals plc is an AIM-quoted, operating minerals company actively developing projects prospective for battery materials. It has an operation in the United States of America and Australia along with development projects in the UK and Australia. The Company is focused on utilising its operating cash flows, along with capital raisings, to develop high quality projects aimed at supplying the metals and minerals being sought in the burgeoning electric vehicle/battery market.
In September 2011, Strategic Minerals acquired the distribution rights to the Cobre magnetite tailings dam project in New Mexico, USA, a cash-generating asset, which it brought into production in 2012 and which continues to provide a revenue stream for the Company. This operating revenue stream is utilised to cover company overheads and invest in development projects orientated to supplying the burgeoning electric vehicle/battery market.
In January 2016, the portfolio was expanded with the acquisition of shares in Central Australian Rare Earths Pty Ltd, which holds tenements in Western Australia prospective for cobalt, nickel sulphides and rare earth elements. The Company has since acquired all shares in Central Australian Rare Earths Pty Ltd. In September 2018, the Company entered contracts for the sale of certain CARE tenements identified as gold targets.
In May 2016, the Company entered into an agreement with New Age Exploration Limited and, in February 2017, acquired 50% of the Redmoor Tin and Tungsten project in Cornwall, UK. The bulk of the funds from the Company's investment were utilised to complete a drilling programme that year. The drilling programme resulted in a significant upgrade of the resource. This was followed in 2018 with a 12-hole 2018 drilling programme has now been completed and the resource update that resulted was announced in February 2019.
In March 2018, the Company completed the acquisition of the Leigh Creek Copper Mine situated in the copper rich belt of South Australia and brought the project into production in April 2019.
In March 2019, the Company, entered into arrangements to acquire the balance of the Redmoor Tin and Tungsten project in Cornwall, UK which has now expected in the first week in July 2019.