Strategic Minerals has secured $9.25m of funding from the US Department of War to accelerate its Redmoor tungsten project in Cornwall, as Washington moves to secure allied supplies of the critical metal.
The AIM-listed company said the non-dilutive investment, made into its wholly owned subsidiary Cornwall Resources, would fund feasibility studies and pre-development work to move the project towards a final decision on building a mine.
Strategic Minerals shares jumped 15% on the news on Monday.
It described Redmoor as Europe’s highest-grade undeveloped tungsten resource. The funding comes with no restrictions on future offtake arrangements, and the company aims to complete the technical and commercial work needed for an investment decision within 32 months.
The award reflects growing US and allied efforts to build secure tungsten supply chains for defence and advanced manufacturing.
Tungsten, a hard, dense metal used in armour, munitions and cutting tools, has become a strategic priority, with the US recently backing several projects across the supply chain.
Mark Burnett, Strategic Minerals Executive Director, said: “This programme provides further additionality to the Company’s plans to integrate and accelerate Redmoor through feasibility. Whilst not guaranteed, further U.K. domestic support for Redmoor is currently also being investigated.”
“The Board would like to thank the CRL team for their hard work and dedication to Redmoor. Their work has positioned the project for this investment, including through an intense application and contracting process, and a recent trip to Philadelphia to discuss its project proposal in person with senior government officials.”