Transaction announced in March to sell NAE’s 50% of the Redmoor Project for a total consideration of approx. A$5M in 3 stages, subject to NAE and the purchaser, Strategic Minerals Plc (“SML”), agreeing on detailed transaction documents with 30 May 2019 with settlement scheduled for 30 May 2019.
Binding contracts for the sale of NAE’s 50% share of Cornwall Resources Limited, the Joint Venture vehicle holding the Redmoor tin and tungsten project, to Strategic Minerals Plc were signed on 13 May 2019 with an agreed settlement date of 30 May 2019. Under the binding transaction agreements NAE will be paid a total consideration of A$5M progressively as follows:
- A$2M on settlement scheduled for 30 May 2019
- A$1M on 29 November 2019
- A$1M on Net Smelter Sales arising from Redmoor production reaching A$50m
- A further A$1M on Net Smelter Sales arising from Redmoor production reaching A$100m
- NAE to hold a charge over its Cornwall Resources shares until the 29 November 2019 payment is made
On 30 May 2019, NAE announced that agreement had been reached with SML to defer the settlement date for the transaction until 27 June 2019 with SML agreeing to pay NAE an additional postponement fee of A$10,000.
On 28 June 2019, NAE announced that the completion date for SML’s acquisition of NAE’s 50% shareholding in Cornwall Resources Limited has been temporarily deferred pending the parties finalising the terms of a revised share purchase agreement.
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.