(Alliance News) - Strategic Minerals PLC on Thursday said it has reached an agreement to amend the terms for buying the remaining 50% stake in the Redmoor tin and tungsten project in Cornwall, England.
"The settlement arrangements for the acquisition of the remaining 50% of Cornwall Resources Ltd, holder of the Redmoor tin and tungsten project, have been renegotiated in light of changes to the company's expected cash flows and we look forward to closing shortly," said Strategic Minerals Managing Director John Peters.
Strategic announced the Redmoor acquisition earlier in May, buying the remaining 50% of Cornwall Resources from New Age Exploration Ltd for AUD5 million, or around GBP2.7 million. It was to initially pay AUD2 million.
The company, however, deferred the initial payment for the acquisition to June 27 to allow Strategic's Cobre asset to receive funds from a major client. Strategic sells magnetite from the Cobre stockpile in New Mexico.
Strategic on Tuesday raised GBP890,000 through a 63.6 million share placing and subscription priced at 1.4 pence per share while it continued to await payment from the Cobre client.
The company continues to expect the USD4.1 million payment from the Cobre client as "imminent" and capable of being "received at any time".
Shares in Strategic Minerals were trading 0.2% lower at 1.60 pence each on Thursday afternoon.
Strategic Minerals (SML)