Strategic Minerals PLC (LON:SML)(USOTC:SMCDY) is to acquire 100% ownership in the Redmoor tin and tungsten project in Cornwall after it entered into arrangements with New Age Exploration Limited to acquire its entire 50% shareholding for a maximum consideration of £2.66 mln.
The money will be payable in three stages.
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The first payment of £1.06mln will be paid in cash within 30 days of New Age Exploration shareholders approving the deal.
The second payment will take the form of a £540,000 promissory note, payable 180 days after settlement.
A royalty stream of 1.5% will be retained by New Age Exploration, but this will be capped at £1.06mln.
"The recent resource upgrade has highlighted the potential world-class nature of the Redmoor tin-tungsten project and has given the board confidence to consolidate control,” said Strategic Minerals director John Peters.
“To date, SML has progressed Redmoor in conjunction with its joint venture partner, NAE, and is delighted that this opportunity has arisen to acquire total control of the project. Whilst the company has sufficient cash resources to fund the acquisition of NAE's interest in Redmoor, it is exploring non-dilutive funding alternatives with a select group of potential investors, at both a holding company and project level.”