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Strategic Minerals to Acquire Balance of Redmoor Tin/Tungsten project in Cornwall, UK.

MANews-(C)2009-2019

18 March 2019 - UK-based mining company Strategic Minerals plc (AIM: SML) (OTC: SMCDY) has entered into arrangements with New Age Exploration Ltd. to acquire its entire 50% shareholding in Cornwall Resources Ltd, a joint venture vehicle developing the Redmoor Tin/Tungsten project in Cornwall, for a total capped purchase price of GBP 2.66m (USD 3.52m), the company said.

This acquisition is subject to approval by NAE shareholders at a general meeting and upon completion of the acquisition, CRL will be 100% owned by SML.

The purchase price has been structured to reflect expected future SML cash flows and a significant component of the purchase price will be determined by future production revenues.

Strategic Minerals is an operating minerals company actively developing projects prospective for battery materials. It has an operation in the United States of America and development projects in the UK and Australia.

The company is focused on utilising its operating cash flows, along with capital raisings, to develop high quality projects aimed at supplying the metals and minerals being sought in the burgeoning electric vehicle/battery market.

In September 2011, Strategic Minerals acquired the distribution rights to the Cobre magnetite tailings dam project in New Mexico, USA, a cash-generating asset, which it brought into production in 2012 and which continues to provide a revenue stream for the company.

This operating revenue stream is utilised to cover company overheads and invest in development projects orientated to supplying the burgeoning electric vehicle/battery market.

In January 2016, the portfolio was expanded 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 cobalt, gold, nickel sulphides and rare earth elements.

The company has since acquired all shares in Central Australian Rare Earths Pty Ltd. In September 2018, the company entered contracts for the sale of certain CARE tenements that have been identified as gold targets.

In May 2016, the company entered into an agreement with New Age Exploration Ltd. and, in February 2017, acquired 50% of the Redmoor Tin/Tungsten project in Cornwall, UK. The bulk of the funds from the company's investment were utilised to complete a drilling programme that year.

The drilling programme resulted in a significant upgrade of the resource. The 12-hole 2018 drilling programme has now been completed and the resource update that resulted was announced in February 2019. In March 2019, the company entered into arrangements to acquire the balance of the Redmoor Tin/Tungsten project in Cornwall, UK.

In March 2018, the company completed the acquisition of the Leigh Creek Copper Mine situated in the copper rich belt of South Australia and is currently working to bring this into operation in 2019.

Country: UK

Sector: Metals/Mining

Target: Cornwall Resources Ltd/remaining 50% share

Buyer: Strategic Minerals

Vendor: New Age Exploration Ltd

Deal size in USD: 3.52m

Type: Corporate Acquisition

Financing:

Status: Agreed

Buyer advisor: , ,

Comment:

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Publication:M & A Navigator
Geographic Code:4EUUK
Date:Mar 18, 2019
Words:493
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