Canadian-listed Strongbow Exploration Inc. completed the acquisition of the South Crofty tin project in Cornwall, UK, on 11 July. It has now agreed a deal with the administrator managing the affairs of the two companies (Western United Mines Ltd and Cornish Minerals Limited) that had previously owned it. In March it had announced agreements with creditors Galena Special Situations Fund (part of the Trafigura group) and stakeholders Tin Shield Production. Finalisation of the acquisition will now allow Strongbow to move towards a preliminary economic assessment (PEA).
The deal involves a mix of cash, loan repayments and share issues, plus agreements for further cash payments or share issues to Galena and Tin Shield as the project passes a set of agreed milestones, the first of which is the receipt of a permit to allow it to begin de-watering the old mine workings. Strongbow intends to focus its attention on the rehabilitation and revival of the lower levels of the mine, which contain an NI 43-101 compliant indicated resource of 1.66 million tonnes of ore at 1.81% tin and an inferred resource of 0.74 Mt at 1.91% tin, or a total 44,100 tonnes of contained tin. South Crofty has an active mine permit to 2071. Strongbow was advised by Stephens Scown LLP.
CEO Richard Williams commented: “We are extremely pleased to have concluded this agreement, and look forward to moving the South Crofty Project to completion of a PEA and, if successful, through a feasibility study towards a production decision in collaboration with all stakeholders in this historic tin mining district. This represents a significant step towards our goal of creating a new strategic metals company with Osisko Gold Royalties as a cornerstone shareholder.” Strongbow had previously acquired Osisko’s Sleitat and Coal Creek tin properties in Alaska in 2015.