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(Alliance News) - Strategic Minerals PLC said Thursday that it has settled the payment structure to acquire New Age Exploration Ltd's 50% stake in Redmoor tin and tungsten project in Cornwall, England.
Strategic will pay New Age an initial AUD290,000, or GBP162,000, taking its total cash paid to date AUD300,000, before paying AUD2.7 million over an 11 month schedule.
Payments of AUD300,000 will be made quarterly before October 31, January 31, 2020, and April 30, 2020. The remaining balance would be paid on June 26, 2020.
Strategic said the interest rate per annum on the AUD2.7 million balance is 5%.
Managing Director John Peters said: "The provision of a vendor loan has assisted the company in managing its cash flow while ensuring that any future arrangements can be planned with the knowledge that the company has total control of Cornwall Resources Ltd."
"The company looks forward to building on this potentially world class mining opportunity over the coming years."
Strategic initially announced the Redmoor acquisition earlier in May, buying the remaining 50% of Cornwall Resources from New Age Exploration Ltd for AUD5.0 million.
Previously, it was to initially pay AUD2.0 million before the end of May and AUD1.0 million before the end of November. In addition, the company would have to pay AUD2.0 million if production in Redmoor reached certain targets.
Strategic Minerals, however, deferred the initial May payment as it awaited funds from a major client of its Cobre project.
Shares in Strategic Minerals are down 5% to 1.33 pence each in London on Thursday afternoon.
