Strategic Minerals PLC Signing of Shareholders Agreement (9302U)
24 January 2017 - 7:00AM
UK Regulatory
TIDMSML
RNS Number : 9302U
Strategic Minerals PLC
24 January 2017
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
24 January 2017
Strategic Minerals plc
("Strategic Minerals" or the "Company" or "SML")
Signing of Shareholders Agreement to increase stake in the
Redmoor Tin/Tungsten project to 50%
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), the diversified
mineral development and production company, announces that it has
entered into a shareholders agreement with New Age Exploration
Limited ("NAE") and Cornwall Resources Limited ("CRL"), the joint
venture vehicle operating the Redmoor Tin/Tungsten project ("the
Project"), whereby Strategic Minerals has agreed to increase its
stake in the Project to 50%.
SML has nominated 31 January 2017 as the date on which it will
formally exercise its option to take up a further 248,864 shares in
CRL at GBP3.39 per share. Once these shares are issued, expected to
be in early February, SML and NAE will each possess 309,838 shares
in CRL, which represents a 50% stake each in the joint venture
vehicle.
The funds receivable by CRL pursuant to the option exercise by
SML are in excess of GBP800,000. These funds will be applied to the
two phase drilling program at the Project around Kelly Brae in
Cornwall. Funds from SML's previous CRL share subscriptions have
provided the working capital to drive the Project forwards,
including a number of key appointments and the issuance of tenders
for the 2017 drilling programme. The active management of both NAE
and SML in this process has put the Project on track for
commencement of drilling in 2017.
The aim of the drilling programme is to increase the current 2.3
Mt high grade Inferred Resource by a further two to three times and
help to provide valuable information to assist in the preparation
of a mine plan.
Commenting, John Peters, Managing Director of Strategic
Minerals, said:
"We are pleased to report on further progress being made towards
bringing the Redmoor Tin/Tungsten project into production. The
Company has managed its operations and cash flows well and has
minimised shareholder dilution whilst continuing to add value to
its portfolio of projects.
"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 and
that this programme can be undertaken professionally within time
and cost parameters.
"We look forward to confirming the issuance of shares in
Cornwall Resources Limited to Strategic Minerals and, following
this, the awarding of the contracts by CRL for the drilling
programme."
For further information, please contact:
Strategic Minerals plc
John Peters
Managing Director
www.strategicminerals.net
Follow Strategic Minerals on:
Twitter: @SML_Minerals
LinkedIn: www.linkedin.com/company/strategic-minerals-plc +61 (0) 414 727 965
SP Angel Corporate Finance LLP
Nominated Adviser and Joint
Broker
Ewan Leggat
Laura Harrison +44 (0)20 3470 0470
Optiva Securities Limited
Joint Broker
Graeme Dickson +44 (0)20 3411 1880
Yellow Jersey PR
Financial PR
Felicity Winkles
Alistair de Kare-Silver
Joe Burgess +44 (0)7825 916 715
Notes to Editors
Strategic Minerals Plc is an AIM-quoted, diversified mineral
development and production company with projects in the United
States of America, the UK and Australia. The Company is focused on
acquiring and developing cash generative, high quality projects
which meet local market demand for commodities and utilising this
cash flow to undertake value added exploration.
In September 2011, Strategic Minerals purchased its first cash
generating asset; the Cobre magnetite tailings dam project in New
Mexico, USA which it brought into production in 2012 and which
continues to provide a revenue stream for the Company. The
portfolio was expanded in January 2016 with the acquisition of
shares in Central Australian Rare Earths Pty Ltd, which holds
tenements in Western Australia and the Northern Territory that are
prospective for nickel sulphides, gold and rare earths. In May
2016, an additional exploration asset was acquired when the company
entered into an agreement with New Age Exploration Limited to
acquire up to 50% of the Redmoor Tin/Tungsten project in Cornwall,
UK.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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January 24, 2017 02:00 ET (07:00 GMT)