New Age Exploration (“NAE”), have announced the signing of an earn-in agreement with AIM-listed Strategic Minerals Plc (“SML”), whereby SML can earn up to 50% interest in the Redmoor tin tungsten project in south east Cornwall, UK, for a total consideration of A$2.1M.
The agreement includes an upfront non-refundable payment of A$214,000 and an A$1,931,000 Option Payment to be made before 31 December 2016. The option payment will be used to fund the working capital cost of the new joint venture company and to fully fund the first stage of the planned 3-phase exploration drilling programme at Redmoor, focussed on the high grade lode mineralisation. Ongoing activities will be managed by a new Joint Venture company on an equal ownership basis. As part of the agreement, NAE will also subscribe for 35,000,000 ordinary SML shares at a total cost of £105,000.
The news follows the positive results of preliminary mining and processing studies announced in March this year by NAE and the release of an updated, JORC-compliant, inferred mineral resource for the project of 13.3 Mt of ore at 0.21% Sn, 0.16 % WO3 and 0.32% Cu. at the end of 2015.
NAE’s Managing Director, Gary Fietz, said: “NAE welcomes SML as its Joint Venture partner for the Redmoor Project and is confident that SML’s access to funding via its AIM listing should enable it to raise sufficient funding to complete the Option Payment. This should allow the Redmoor drilling programme to proceed later this year which we expect will add significant value to the project and to NAE shareholders.“
