In July 2019, a transaction was completion to sell NAE’s 50% share of the Redmoor Tin-Tungsten Project, located in Cornwall, United Kingdom to Strategic Minerals Plc (“SML”) for a total consideration of $5.0m as follows:
- $3.0m in cash payments between June 2019 and June 2020 payable as follows:
- $10,000 paid in June 2019 and $290,000 paid in July 2019 (total of $300,000 paid to date),
- 3 Quarterly payments of $300,000 to be paid on or before 31 October 2019, 31 January 2020 and 30 April 2020 respectively,
- $1,800,000 payment due on or before 26 June 2020 ,
- Interest of 5% p.a on the outstanding balance of cash payments owed to NAE ($2,700,000 as at 26 July 2019), calculated on a daily balance basis and payable at the end of each calendar quarter, and
- The above payments are secured by; a charge over 100% of SML’s shares of Cornwall Resources Limited (“CRL”), a debenture charge over CRL’s property, and, in the event of default, NAE has the option to convert any outstanding balances due to SML shares at 90% of the VWAP for SML shares in the 10 trading days prior to the issue of the notice to convert.
- $2.0m in royalty payments payable as follows:
- $1,000,000 on Net Smelter Sales arising from Redmoor production reaching A$50m, and
- $1,000,000 on Net Smelter Sales arising from Redmoor production reaching A$100m.
Location and History
The Redmoor Project is located between the village of Kelly Bray and the town of Callington in southeast Cornwall, United Kingdom, approximately 25km by road from the city and port of Plymouth. The area has well-established infrastructure and is located in the world class Cornwall tin–tungsten–copper mineralised district.
2019 Resource Update
A resource update was undertaken in February 2019 based on the highly successful 2018 drilling program undertaken by CRL.
In February 2019, an updated Inferred Mineral Resource of 11.7 Mt @ 0.56% WO3, 0.16% Sn, 0.50 % Cu (1.17% Sn Eq or 0.82% WO3 Eq) was defined within 10 parallel high-grade zones within the Sheeted Vein System (SVS) using a break even cut-off grade of 0.45% Sn Eq.
Redmoor Inferred Mineral Resource Estimate table
|Cut-off (SnEq%)||Tonnage (Mt)||
|Total Inferred Resource||11.7||0.56||0.16||0.50||1.17||0.82|
This represents a tripling of the contained metal (now 137kt Sn Eq) compared with the previous March 2018 Mineral Resource estimate.
The 1.17% Sn Eq updated Inferred Mineral Resource grade, reported at a 0.45% break-even cut-off grade, is 17% higher than the previous March 2018 Mineral Resource estimate (4.5Mt @ 1.0% Sn Eq).
Included within the Inferred Mineral Resource is 10.2Mt at 1.26% Sn Eq at a 0.65% Sn Eq total cost cut-off grade, reinforcing the potential to economically mine the resource.
Continuity of the SVS which hosts the high-grade zones is now confirmed over a strike length in excess of 1,000 m and for some 650 m down dip. Ore body geometry appears likely to be amenable to underground mining.