Strategic Minerals PLC (AIM:SML, OTC:SMCDF) leapt over 47% in early trades to 0.18p after its Cornwall Resources (CRL) arm signed a five-year agreement with Oxfordshire-based nuclear fusion company, Oxford Sigma.
The memorandum of understanding signed by the two companies states that the pair will "collaborate to explore, develop, promote and secure critical mineral supply pathways for tungsten to supply the fusion industry".
CRL, which owns the Redmoor tin-tungsten project in Cornwall, said it was encouraged by the projections of future tungsten requirements from the fusion industry, where each potential reactor is estimated to need between 100 tonnes and 5,000 tonnes of tungsten dependent on the design.
Redmoor, which is in the world’s top five highest grade tin-tungsten projects and the top three new projects, is looking to secure local grant funding and earlier this year said it was confident of making progress in the second half of the year, including potential expansion of its mineral rights catchment area.
Currently, almost all of the global tungsten supply is controlled by China, Russia and Vietnam.