Strategic Minerals plc (LSE:SML) has raised £4 million through a placing and subscription involving 307.7 million new shares priced at 1.3 pence. The fundraising attracted interest from UK and overseas institutional investors, family offices and ultra-high-net-worth individuals. In addition, the company issued 7.5 million shares in settlement of adviser fees, taking total voting share capital to approximately 2.68 billion shares.
The net proceeds are earmarked to fast-track development of the Redmoor tungsten–tin–copper project in Cornwall. Plans include a 16,000-metre infill drilling campaign and the expansion of the on-site project team, with drilling expected to begin this quarter. Management said the programme should substantially complete the work required for a prefeasibility study. The company also pointed to supportive market conditions, citing rising tungsten prices, tightening supply, and Redmoor’s position as the highest-grade undeveloped tungsten resource in Europe as key factors underpinning its decision to accelerate progress toward potential production.
Looking ahead, Strategic Minerals’ outlook is supported by positive corporate activity and a marked financial recovery during 2024. That said, technical indicators point to only moderate momentum, while the elevated P/E ratio suggests possible valuation pressure. Limited insight from earnings call disclosures also constrains visibility on near-term management expectations.
More about Strategic Minerals
Strategic Minerals plc is an AIM-quoted international mineral exploration and production company with projects across the UK, the United States and Australia. The group owns 100% of Cornwall Resources Limited and the Redmoor Tungsten–Tin–Copper Project in Cornwall, operates the Cobre magnetite project in New Mexico as a long-term cash-generating asset, and has previously acquired the Leigh Creek Copper Mine in South Australia, reflecting its focus on critical and industrial minerals across multiple jurisdictions.
Leave a Reply