REG - Strategic Minerals - Match Grant Funding Investment for Redmoor Project

Strategic MineralsAnnouncement

07/04/2025 07:00

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RNS Number : 8869D  Strategic Minerals PLC  07 April 2025

 

 

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 ('MAR') which has been incorporated into UK law by the
European Union (Withdrawal) Act 2018.

 

 

7 April 2025

 

Strategic Minerals plc

("Strategic Minerals" or the "Company")

Match Grant Funding Investment for Cornish Critical Minerals Project

Exploration and drilling to enable accelerated development of Redmoor
Tungsten-Tin-Copper Project

Strategic Minerals plc (AIM: SML; USOTC: SMCDF), an international mineral
exploration and production company, is pleased to announce that its wholly
owned subsidiary, Cornwall Resources Limited ("CRL"), has finalised grant
funding of over £764k with the UK Government through the UK Shared Prosperity
Fund ("SPF").  Cornwall Council is responsible for managing projects funded
by the UK Shared Prosperity Fund through the Cornwall and the Isles of Scilly
Good Growth Programme.

The grant funding, which will be equally matched by Company expenditure up to
a total Project spend of £1,529,701, will enable new exploration activities,
including borehole drilling, aimed at accelerating the development of the
Company's Redmoor Tungsten-Tin-Copper Project ("Redmoor") in Cornwall. This
will be the first new exploration drilling to be undertaken at Redmoor since
2018.

Highlights:

·    Project titled: "Exploration Drilling and Associated Activities to
Enable Accelerated Development of the Redmoor Critical Minerals Project" (the
"Project")

·    SPF will fund 50% of the Project expenditure to advance Redmoor,
matching the Company's contribution up to a total aggregate investment of
£1,529,701

·    Within the 12-month Project timeframe, the Company aims to:

o  Undertake c.5,000m of new diamond core drilling and other associated
activities

o  Complete the ongoing relogging programme

o  Combine the results of new drilling and relogging with the aim to produce
a new, upgraded and enlarged mineral resource estimate ("MRE") for Redmoor
from the 2019 MRE

o  Update the economic model, using the updated MRE and incorporating the
significantly increased commodity prices since the 2020 Redmoor Scoping Study
was produced

o  Formulate an investment-ready business case and delivery plan, before the
end of March 2026, for moving Redmoor into prefeasibility

·    This investment opens the door for further potential follow-on
investments to advance Redmoor to enable its accelerated development

·    CRL is currently hiring five new, full-time, employees to augment its
technical team

Commenting, Charles Manners, Chairman of Strategic Minerals, said:

"I congratulate the hard work of our CRL team in securing this opportunity to
co-fund a significant work programme. The grant funding investment through the
CIOS Good Growth Programme will seek to enable the accelerated development of
Redmoor and improve our ability to highlight its world-class, high-grade,
polymetallic tungsten resource.  We look forward to announcing results as the
Project progresses.

"Match funding by SML unlocks the grant funding from the CIOS Good Growth
Programme, and continues to support our improved outlook, secured through
operational and management changes.

"The Company has committed to scaling the opportunity in Cornwall, and this
Project marks the first steps in relaunching the Company and highlighting the
world-class potential of the Redmoor Tungsten-Tin-Copper Project."

Background:

Following the one-year extension of the UK Shared Prosperity Fund ("SPF") and
Cornwall and Isles of Scilly ("CIOS") Good Growth Programme, and increased
investment by the UK Government in the scheme, Cornwall Resources Limited
("CRL") was invited to apply as part of a competitive application process to
access available grant funding.  The funding is aimed at supporting local
business investment, with a focus on green and inclusive growth in the
high-value and high-growth sectors outlined in the CIOS Good Growth Investment
Plan, including georesources.

Utilising the knowledge and experience of the CRL team, gained through
successive applications, a strong bid, alongside a business case, was
submitted in January 2025.  Following a successful review, and a contracting
process, a grant funding agreement between CRL and the CIOS Good Growth
Project has now been signed, with Project activities underway.

The Project has a total allocated spend of £1,529,701, with a 50%
intervention rate.  Strategic Minerals will provide the match funding to
achieve the total allocation, and cashflow project activities, with grant
funding reclaimed in arrears on a quarterly basis.

The Project includes 12-months of activities including:

·    Six months of exploration drilling with a target to produce c.5,000 m
of new diamond core, alongside the completion of the Redmoor historical
relogging and sampling programme

·    Incorporating the results of both to strengthen the geological and
resource model of Redmoor and leading to a new MRE for the Redmoor
tungsten-tin-copper deposit

·    New metallurgical programmes to advance the knowledge and
understanding of processing design and metal recoveries for Redmoor's target
critical metals (tungsten, tin, and copper), to further strengthen a new MRE,
and an update to Redmoor's economic model

·    An economic model update for Redmoor, incorporating all new data from
the Project with an assessment of metal prices. Redmoor's economics currently
rely on outdated, and lower, metal prices from 2020

·    Utilising all Project outputs to prepare an investment-ready business
case and delivery plan for advancing Redmoor into and through prefeasibility

·    Community and place-based activities in line with CRL's strong
stakeholder engagement records, and production of CRL's first sustainability
strategy

To facilitate Project activities and ensure successful delivery within time
and budget, CRL is actively recruiting five new project staff.  Alongside
other investments in CRL, these staff will also increase CRL's ability to
expand project activities and scope.

Subject to the successful completion of all Project activities, an
investment-ready business case and delivery plan for prefeasibility will be
produced and utilised as part of the efforts to secure further funding to
enable the accelerated development of the Redmoor critical minerals project.

 For further information, please contact:

 Strategic Minerals plc                                                   +44 (0) 207 389 7067
 Mark Burnett
 Executive Director
 Website:                 www.strategicminerals.net (http://www.strategicminerals.net)
 Email:                   info@strategicminerals.net (mailto:info@strategicminerals.net)

 Follow Strategic Minerals on:
 X:                       @SML_Minerals (https://twitter.com/SML_Minerals)
 LinkedIn:                https://www.linkedin.com/company/strategic-minerals-plc
                          (https://www.linkedin.com/company/strategic-minerals-plc)

 SP Angel Corporate Finance LLP                                           +44 (0) 20 3470 0470
 Nominated Adviser and Broker
 Matthew Johnson/Charlie Bouverat/Grant Barker

 Vigo Consulting                                                          +44 (0) 207 390 0234
 Investor Relations
 Ben Simons/Peter Jacob/Anna Sutton
 Email:                   strategicminerals@vigoconsulting.com
                          (mailto:strategicminerals@vigoconsulting.com)

 

 

 

Notes to Editors

About Strategic Minerals Pls and Cornwall Resources Limited

Strategic Minerals plc (AIM: SML; USOTC: SMCDY) is an AIM-quoted, producing
minerals company, actively developing strategic projects in the UK, United
States and Australia.

In 2019, the Company completed the 100% acquisition of Cornwall Resources
Limited ("CRL") and the Redmoor Tungsten-Tin-Copper Project.

The Redmoor Project is situated within the historically significant Tamar
Valley Mining District in Cornwall, United Kingdom, with a JORC Compliant
(2012) Inferred Mineral Resource Estimate published 14 February 2019:

 Cut-off (SnEq%)          Tonnage (Mt)  WO(3)  Sn    Cu    Sn Eq(1)  WO(3) Eq

                                        %      %     %     %         %
 >0.45 <0.65              1.50          0.18   0.21  0.30  0.58      0.41
 >0.65                    10.20         0.62   0.16  0.53  1.26      0.88
 Total Inferred Resource  11.70         0.56   0.16  0.50  1.17      0.82

1 Equivalent metal calculation notes; Sn(Eq)% = Sn% x 1 + WO3% x 1.43 + Cu% x
0.40. WO(3)(EQ)% = Sn% x 0.7 + WO(3) + Cu% x 0.28. Commodity price
assumptions: WO3 US$ 33,000/t, Sn US$ 22,000/t, Cu US$ 7,000/t. Recovery
assumptions: total WO3 recovery 72%, total Sn recovery 68% & total Cu
recovery 85% and payability assumptions of 81%, 90% and 90% respectively

More information on Cornwall Resources can be found at:
https://www.cornwallresources.com (https://www.cornwallresources.com)

In September 2011, Strategic Minerals acquired the distribution rights to the
Cobre magnetite project in New Mexico, USA, through its wholly owned
subsidiary Southern Minerals Group ("SMG").  Cobre has been in production
since 2012 and continues to provide a sustainable revenue stream for the
Company.

In March 2018, the Company completed the acquisition of the Leigh Creek Copper
Mine ("LCCM") situated in the copper rich belt of South Australia.  The
Company continues seek opportunities to monetise the asset.

About the CIOS Good Growth Fund and UK Shared Prosperity Fund

This project is part-funded by the UK Government through the UK Shared
Prosperity Fund.  Cornwall Council is responsible for managing projects
funded by the UK Shared Prosperity Fund through the Cornwall and the Isles of
Scilly Good Growth Programme (https://ciosgoodgrowth.com/) .

Cornwall and Isles of Scilly has been allocated £184 million for local
investment through the Shared Prosperity Fund
(https://www.gov.uk/government/publications/uk-shared-prosperity-fund-prospectus/uk-shared-prosperity-fund-prospectus)
.  This new approach to investment is designed to empower local leaders and
communities, so they can make a real difference on the ground where it's
needed the most.

UK Shared Prosperity Fund

The UK Shared Prosperity Fund proactively supports delivery of the
UK-government's five national missions: pushing power out to communities
everywhere, with a specific focus to help kickstart economic growth and
promoting opportunities in all parts of the UK.

For more information, visit

https://www.gov.uk/government/publications/uk-shared-prosperity-fund-prospectus
(https://www.gov.uk/government/publications/uk-shared-prosperity-fund-prospectus)

For more information, visit https://ciosgoodgrowth.com
(https://ciosgoodgrowth.com)

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