Strategic Minerals PLC (LON:SML) has raised £429,000 to fund exploration at Hanns Camp and move forward with its tungsten project in Cornwall.
Shares were issued at 0.3p and the money will allow it to make the initial payment on NAE Resources (Redmoor) in Cornwall and costs of the drilling for nickel currently underway at Hanns Camp in Western Australia.
John Peters, managing director, said: "The placing is an important step in executing the company's strategy of investing into projects with metal assets that the board considers will benefit from price rises over the next three to five years.
“While the funds raised in this issue are not sufficient to exercise the Redmoor option, they provide the company the flexibility to investigate funding alternatives to complete the option prior to its 31 December 2016 expiry.
“These options include a possible further fund raise by Strategic Minerals, as well as discussions the company is currently holding with parties who have expressed an interest in undertaking a position in the Redmoor project at an asset level."
Last month, Straegic announced it was to acquire up to a 50% stake in Redmoor from Aussie firm New Age Exploration Limited. Strategic Minerals initially will pay £105,000 for a 9% stake, which can be increased to 50% through payment of a further £945,000.
At Hanns Camp, Aussie partner CARE is drilling for nickel in an area that has seen several major finds.