Canadian-listed Strongbow Exploration (TSX-V: SBW) has successfully raised C$10.7 million (~US$8.6 million) from a royalty sale and private placement which will be used for working capital and for construction of a water treatment plant at its South Crofty tin project in Cornwall, UK.
The company successfully completed water treatment trials in March 2017 and has since submitted an application to the Environment Agency for a mine water discharge permit, successful receipt of which would mean the project was fully permitted. The company has since engaged engineering firms for design of a 25,000 cubic metres per day water treatment plant to enable the dewatering of historical mine workings across the South Crofty project area.
In September, Strongbow raised C$2.2 million (~US$1.8 million), including C$1,33 million (~US$1.1 million) from its largest shareholder, Osisko Gold Royalties, and the remainder from a non-brokered private placement. In addition, the company entered into a C$8.5 million (~US$6.8 million) royalty sale and equity financing agreement with Osisko including the sale of a 1.5% Net Smelter Returns royalty on potential future production from South Crofty.
Richard Williams, President and CEO of Strongbow stated: “The Company expects to receive the discharge permit later this year, and commence dewatering of the mine in the first half of 2018, as planned.”
ITRI View: Taking all necessary steps to move ahead with dewatering the mine is the immediate priority for advancing the South Crofty tin project. Strongbow is targeting deeper tin mineralisation below 400m for a potential mine but further exploration drilling of this part of the deposit can’t be carried out efficiently while the mine is flooded. Although complete dewatering of the mine is expected to take over 1.5 years, once the higher levels of the mine are dewatered cheaper exploration drilling options for defining this deeper mineralisation will be possible.
