REG - Strategic Minerals - Redmoor Update

Strategic MineralsAnnouncement

21/04/2022 07:00

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RNS Number : 8023I  Strategic Minerals PLC  21 April 2022

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.

21 April 2022

Strategic Minerals plc

("Strategic Minerals", "SML" or the "Company")

 

Redmoor Update

10 Year Exploration Licence Extension

Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a profitable producing
mineral company, is pleased to announce that its 100% owned subsidiary
Cornwall Resources Limited ("CRL") has signed a 10-year extension to its
existing Redmoor exploration licence agreement.

Highlights:

·    Redmoor Exploration Licence extended to 2037

·    25-year Mining Lease option confirmed

·    General Permitted Development Order ("GPDO") application in progress

·    Recent commodity price increases likely to result in further upside
to project's internally estimated US $163m NPV (8%) despite general increases
in mining costs

The Redmoor exploration licence which provides the rights to explore over the
entire licence area was due to expire in 2027, this has now been extended to a
new end date of 18 October 2037. There remains a mining lease option which
provides the right for CRL to enter into a 25-year mining lease (renewable for
a further 25 years) over any part of the licence area. During the exploration
licence period, a modest annual licence fee is payable to the vendor which
converts to a 3% net smelter return vendor royalty on mining commencement.

The original exploration licence was entered into by New Age Exploration
Limited in October 2012, whereby the rights were acquired via an exploration
licence and mining lease option arrangement, over a 23km(2) area surrounding
the Redmoor deposit in East Cornwall.

CRL's most recent updated inferred mineral resource was produced by Cornwall
based consultants Geologica (UK) and totals 11.7 mt @ 0.56% WO3, 0.16% Sn, and
0.50% Cu.

A GPDO application is currently in progress; seeking approval to conduct a
focused drilling programme which will target new tin prospects in the Redmoor
West area. The earlier trenching work, in this area, has indicated potential
near surface tin deposits which could be likely to accelerate mining
commencement.

With tin, tungsten and copper prices all significantly higher than those
utilised in the Company's update on the project's projected economics (21
November 2021), the Directors believe that the project after tax NPV at 8% pa
is expected to further increase from the US $163m previously reported. This is
despite an expected increase in mining costs since this time.

Commenting, Peter Wale, Executive Director of Strategic Minerals and Director
of CRL, said:

"We are pleased to have extended the original exploration licence by an
additional 10 years. This secures our footprint in the region and adds long
term confidence to the tenure of the Redmoor project, which comes at a time
when Cornish assets are starting to attract ever greater interest and rising
valuations.

"Tin continues to attract wider coverage both within and beyond the mining
community and this has been reflected in the substantial tin price
appreciation since SML took full ownership of the project. On top of that,
tungsten is also quietly edging up and is now approaching 8-year highs. There
has been significant US oil and gas industry demand for tungsten.

"The evolving Critical Minerals agenda is also seeing companies consider more
carefully where they are sourcing materials. Heightened concerns on critical
mineral supply in the US have also resulted in the Defense Production Act
being invoked to increase domestic production of minerals used in both the EV
space and the wider clean energy economy. Last month Canadian miners secured a
total of C$3.8 billion in potential government funding to develop critical
minerals necessary for electric vehicles and other technologies. We look
forward to the UK Government taking a similar stance."

 

 For further information, please contact:

 Strategic Minerals plc                                   +61 (0) 414 727 965
 John Peters
 Managing Director
 Website:               www.strategicminerals.net (http://www.strategicminerals.net/)
 Email:                 info@strategicminerals.net (mailto:info@strategicminerals.net)

 Follow Strategic Minerals on:
 Vox Markets:           https://www.voxmarkets.co.uk/company/SML/
                        (https://www.voxmarkets.co.uk/company/SML/)
 Twitter:               @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
 Ewan Leggat
 Charlie Bouverat

Notes to Editors

Strategic Minerals plc:

Strategic Minerals plc is an AIM-quoted, profitable operating minerals
company. It has operations in the United States of America and Australia along
with a development project in the UK. 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 the Board considers likely
to benefit from future supply and demand factors.

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 progressing the Company's development
projects.

In May 2016, the Company entered into an agreement with New Age Exploration
Limited and, in February 2017, acquired 50% of the Redmoor Tin and Tungsten
project in Cornwall, UK. The bulk of the funds from the Company's investment
were utilised to complete an initial drilling programme that year. This
programme resulted in a significant upgrade of the resource. This was followed
in 2018 with a 12-hole drilling programme which resulted in the resource
update announced in February 2019. In March 2019, the Company entered into
arrangements to acquire the balance of the Redmoor Tin and Tungsten project.
This was completed on 24 July 2019.

In March 2018, the Company completed the acquisition of the Leigh Creek Copper
Mine situated in the copper rich belt of South Australia and brought the
project into production in April 2019.

 

 

 

 

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