Strategic Minerals has raised £4.7 million through a direct share subscription to accelerate development of its Redmoor tungsten-tin-copper project in Cornwall.
The AIM-listed company issued 134.3 million new ordinary shares at 3.5 pence each, representing a 16.7% discount to the closing mid-market price on 18 March.
The company says the placing was conducted after a ‘prominent international investor’ approached it directly. This investor led the round.
The board described the investment as a strategically important moment.
Net proceeds will be directed towards Redmoor, which Strategic Minerals regards as its flagship UK asset. The placing comes as tungsten prices soar amid disruption to global trade due to the conflict in the Middle East.
“Having been approached by a prominent international investor, the Board decided to take the opportunity to fast-track the already accelerated development of the Redmoor Tungsten-Tin-Copper Project,” said Charles Manners, Executive Chair of Strategic Minerals.
“Underpinned by favourable pricing for all our minerals, this investment represents a clear endorsement of the Company’s high-quality asset base, and its objective to develop Redmoor and the surrounding area into a leading source of strategic and critical minerals here in the UK to provide resilience to western world supply chains.
“We are delighted to welcome the investor to our register and are grateful for their support and confidence in the Company.”
The company belives the project has the potential to supply around 30% of Europe’s tungsten demand.