Shares of Strategic Minerals took a hit on Friday following the news that its Cornwall, U.K. subsidiary’s grant application to a local council for the shared prosperity fund has been unsuccessful. Despite this setback, the company remains optimistic and is already working on resubmitting a modified version of the application.
As of 0735 GMT, shares were down by 0.02 pence or 13%, reaching 0.15 pence.
According to Strategic Minerals, Cornwall Resources Ltd.’s application for funding to develop the Redmoor tin-tungsten project did not receive approval. However, with encouragement from the council, the company plans to submit a new version before the next application deadline on August 4th.
While disappointed by the recent outcome, the company expects the project to still receive government funding due to its alignment with the U.K. government’s critical minerals strategy. Additionally, it is anticipated that the project will generate well-paid job opportunities in East Cornwall, making it eligible for central government’s “Levelling Up” investment policy.
In addition to pursuing funding options, Cornwall Resources is actively engaging in discussions with various parties regarding collaborations on the Redmoor project. The company also aims to establish formal development arrangements at the asset level. It is worth noting that Cornwall council has already granted planning permission for an extended drilling campaign.
“We have had recent encouraging discussions with different parties, leaving us optimistic about the progress of Redmoor in the second half of the year. There is also potential for an expansion of its mineral rights catchment area,” stated John Peters, Managing Director of Strategic Minerals.