Strategic Minerals plc (LON:SML) has raised £600,000 in an oversubscribed placing to further its ambitions in Cornish tin and tungsten and a nickel project in Australia.
The cash will last it through until at least the fourth quarter of 2017, the junior miner reckons.
Strategic sold 150mln new shares at 0.4p a pop to new and existing investors. It was arranged by SP Angel, who has been appointed joint broker, and aided by Optiva. That was a 33% premium to the placing price in June this year.
Managing director John Peters told investors: "We are very encouraged with the market's response to the Placing - a strategic decision to raise funds to complete the company's 50% interest in the Redmoor Tin/Tungsten project in Cornwall, in addition to undertaking further drilling through the company's investment in CARE, while minimising shareholder dilution."
"While additional funds were on offer, the board considered that, at these share price levels, and with strong operating cash flows from Cobre and US$400,000 from the rail claim settlement due in January 2017, the company would contain the issue to only 150,000,000 shares."
Peters added that the net proceeds - around £565,000 - will be invested in improving assets via drill programmes - while cash flows at the Cobre magnetite site in New Mexico continued to more than support working capital.
WATCH: Strategic Minerals sees strong demand for its shares
Strategic holds 16.4% of Redmoor's capital but has the option to increase that stake to 50%.
Redmoor holds an exploration licence and option over 23 sq km in the Cornish tin-tungsten-copper mining district with rights to explore over the entire area for 15 years and to enter into a 25-year mining lease (renewable for a further 25 years) over any part of the licence area.
A review of historical data has indicated a JORC-compliant mineral resource of 13.3mln tonnes at 0.37% tungsten equivalent, or WO3Eq, which is 0.56% in tin equivalent (SnEq) terms.
At Hanns Camp, Aussie partner CARE is drilling for nickel in an area that has seen several major finds.
--Updates for CEO interview--