(Alliance News) - Strategic Minerals PLC said on Friday that Cornwall Resources Ltd was working towards resubmitting an application to the Cornwall and Isle of Scilly Council Shared Prosperity Fund, after its first application for its Redmoor project was unsuccessful.
London-headquartered mining company Strategic Minerals, which has projects in New Mexico, South Australia and the UK, said Cornwall Resources is negotiating with unrelated parties as a precursor to a closer formalised relationship.
Strategic Minerals acquired 50% of the Redmoor exploration project through a subscription of shares in Cornwall Resources Ltd, in May 2016.
The Redmoor project is located in eastern Cornwall. Cornwall Resources commenced active exploration there in 2017, drilling 14,000 metres of diamond core so far.
Strategic Minerals said that the Redmoor project will benefit from government funding as it falls within the government's critical minerals strategy, will result in well-paid jobs in East Cornwall, and is likely to benefit from the UK government's levelling up policy.
Managing Director John Peters says: "Engagement continues with both Cornwall Council and other local stakeholders. Recent encouraging discussions with various parties leave us confident of progress at Redmoor in the second half of the year including potential expansion of its mineral rights catchment area.
Shares in Strategic Minerals were down 25% at 0.13 pence in London on Friday.
By Will Neill, Alliance News reporter
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Strategic Minerals (SML)