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VIDEO: The firm behind South Crofty project to list on Stock Exchange

VIDEO: The firm behind South Crofty project to list on Stock Exchange

Published by the Pirate FM News Team at 2:02am 20th May 2018.

Firm behind South Crofty project to list on Stock Exchange

A company hoping to reopen one of Cornwall's most iconic tin mines has revealed plans to float on the London Stock Exchange in a bid to finance it.

Bosses from Strongbow Exploration announced the plans to invest in the underground South Crofty tin mine, near Camborne, back in 2017.

It's after the Canadian company took over the site in July 2016 and those behind it say the project could create nearly 300 new jobs.

However, they claim they need to raise £25million over the next 18 months if they want to progress to a production decision first.

Richard Williams, Strongbow CEO, said: "Strongbow has achieved a great deal since acquiring the South Crofty project in July 2016, and its planned admission to AIM, which is the next step in the Company's strategy, is a very exciting development.

"The company continues to advance South Crofty to a production decision, with a plan to re-commence production in 2021.

"The project has all necessary permits in place, and, as a former producing mine, offers great potential at a relatively low risk".

South Crofty has production records dating back to 1592 and was the last tin mine to close in the UK in 1998.

Since then, the dynamics of the global tin industry have changed substantially and experts at Strongbow claim South Crofty has the potential to become an operating mine once again.

The company says it will now apply to float on the London Stock Exchange, with the hope that their admission will become effective in June 2018.

Richard added: "The global demand for tin, especially in consumer electronics, combined with current tin price forecasts, underpins Strongbow's strategy.

"I would like to take this opportunity to thank our existing shareholders for providing us with the support to reach this milestone".

The Company's Common Shares will continue to list, in the immediate future, on the TSX-V in Canada.

Watch what it was like to work in a Cornish mine back in the 60s...

 

So what are the key strengths?

  • High grade and expandable resource - South Crofty is one of the highest grade undeveloped tin projects globally
  • Proven production capability - the mine was in production for over 400 years
  • Strong local support in a stable and supportive jurisdiction
  • Strong and supportive cornerstone shareholder - Osisko Gold Royalties currently own 30.61% of the existing share capital
  • Experienced board with a track record of deposit discovery, mine building, and generating shareholder value
  • Fully permitted to production
  • Operational and existing transport infrastructure in place
  • Favourable tin market conditions - tin prices have increased 60% since 2016 and are currently around $21,000 per tonne

The South Crofty project is fully permitted through to production, with planning permission to construct a new process facility and Underground Planning Permission (mining permit) which is valid until 2071.

In October 2017, Strongbow was successful in securing a Mine Waste and Water Discharge Permit allowing for the dewatering of the flooded mine workings.

In January 2018, the Company issued a C$7,170,000 loan note to its largest shareholder, Osisko Gold Royalties Ltd.

This loan note is convertible (at the option of Osisko Gold Royalties) to a 1.5% Net Smelter Returns Royalty.

These proceeds are being used to construct a water treatment plant, which is expected to be completed by the end of October 2018.

Upon completion of the water treatment plant, the dewatering of the mine will commence.

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