Washington's non-dilutive backing for the Cornwall tungsten project sends AIM shares sharply higher.
Strategic Minerals (AIM: SML) saw its shares leap 15% on Monday after the company revealed it had secured $9.25m of funding from the US Department of War to speed up development of its Redmoor tungsten project in Cornwall.
The cash injection, described as non-dilutive, will flow into wholly owned subsidiary Cornwall Resources and is earmarked for feasibility studies and pre-development work as the project moves towards a final investment decision. Investors responded immediately, pushing the stock sharply higher on the news.
Strategic Minerals bills Redmoor as Europe's highest-grade undeveloped tungsten resource, a status that has taken on fresh significance as Washington and its allies scramble to secure supply chains for a metal critical to armour, munitions and cutting tools. The US has recently thrown its weight behind several projects across the tungsten supply chain, and the Redmoor award is the latest sign of that strategic push extending into the UK.
Crucially for the company, the funding comes with no restrictions on future offtake arrangements, leaving Strategic Minerals free to negotiate sales terms independently once the project reaches production. Executive Director Mark Burnett said the award gave 'further additionality' to plans to integrate and accelerate Redmoor, crediting the Cornwall Resources team's efforts through an 'intense application and contracting process' that included an in-person pitch to senior officials in Philadelphia.
The company now aims to complete the technical and commercial work needed for an investment decision within 32 months. Burnett flagged that additional UK domestic support for Redmoor is also being explored, though he stressed this is not guaranteed, leaving the project's ultimate path to construction still contingent on further funding and studies.
This report is based on Strategic Minerals’s announcement and coverage by UK Investor Magazine. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full results calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: Albert Hyseni on Unsplash.
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