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LONDON (Alliance News) - Strategic Minerals PLC on Tuesday said it has raised funding to back the exercise of its option over the Redmoor project in the UK and to finance further drilling at Hanns Camp in Australia.
The company said it has raised GBP429,000 through the placing of 143 million shares at 0.3 pence each. Shares in Strategic Minerals were trading down 9.4% at 0.299 pence on Friday morning.
The net proceeds of the placing will be used to exercise the option to acquire an additional interest in NAE Resources (UK) Ltd, otherwise known as Redmoor, towards the drilling at the Hanns Camp project in Australia, and to progress the drilling programme at Redmoor.
Strategic Minerals agreed a deal to buy up to a 50% stake in Redmoor in May this year. It initially bought a 9% stake for GBP104,998 and has an option to buy the remaining 41% for GBP945,349.
Redmoor holds an exploration licence and option of 23 kilometres in the Cornish tin-tungsten-copper mining district in the UK for a period of 15 years.
On Tuesday, Strategic Minerals said that while the funds raised in its share placing are not sufficient to exercise the Redmoor option, they provide the company with the flexibility to investigate funding alternatives to complete the option prior to its December 31 expiry, including a possible further fundraise as well as discussions it is currently holding with parties interested in undertaking a position in the Redmoor project.
"The placing is an important step in executing the company's strategy of investing into projects with metal assets which the board considers will benefit from price rises over the next three to five years," Managing Director John Peters said in a statement.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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