From SML website Strategic Minerals plc ("Strategic Minerals" or...

From SML website
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 £3.39 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 £800,000. 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."