Last checked at 
LONDON (Alliance News) - Strategic Minerals PLC said Monday it has agreed to buy the remaining 50% stake held in Cornwall Resources from its joint venture partner New Age Exploration Ltd.
This acquisition will give it full control of the Redmoor tin tungsten project in Cornwall, south west England. The acquisition is subject to approval by New Age Exploration's shareholders at a general meeting.
Strategic Minerals will purchase the 50% stake of Cornwall Resources for a maximum of GBP2.7 million.
The company intends to make payments in three stages with the first tranche of GBP1.1 million in cash paid within 30 days of approval by New Age Exploration shareholders.
Strategic Minerals will pay a further GBP540,000 during 180 days after settlement. Thereafter, it will pay up to GBP1.1 million in royalties from Redmoor production.
The AIM-listed minerals production company entered a joint venture with New Age Exploration, an Australia-based resource company, in 2016.
In February 2017, Strategic Minerals bought 248,864 shares in Cornwall Resources for GBP843,649, taking its holding in the project to 50%. The proceeds from the acquisition were used to complete a drilling programme, which resulted in an upgrade of the resource.
John Peters, managing director of Strategic Minerals, said: "The recent resource upgrade has highlighted the potential world class nature of the Redmoor project and has given the board confidence to consolidate control. To date, Strategic Minerals has progressed Redmoor in conjunction with its joint venture partner, NAE, and is delighted that this opportunity has arisen to acquire total control of the project."
Strategic Minerals shares were trading 3.0% higher at 1.73 pence on Monday.
