Strategic Minerals PLC (LON:SML) has exercised its option to take a 50% stake in the Redmoor tin/tungsten project in Cornwall.
It will pay around £840,000 for its shares, money that will be used by the joint venture at Redmoor for a drill programme.
The aim will be to increase the current 2.3Mt inferred resource by a further two to three times and the preparation of a mine plan.
Following the payment by Strategic, Redmoor will be a joint venture with New Age Exploration with each company owning 50%.
John Peters, Strategic Minerals’ managing director, said: "We are pleased to report on further progress being made towards bringing the Redmoor Tin/Tungsten project into production.
"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.”