Tin mining could be back on the agenda in Cornwall, with a deal in place to buy South Crofty from the administrators.
Leading local law firm Stephens Scown has advised Canadian company, Strongbow Exploration Inc, on the acquisition of the mine.
The deal gives Strongbow Exploration the right to acquire, from administration, a 100% interest in the South Crofty Tin Project and associated mineral rights.
The South Crofty Tin Project is located in the towns of Pool, Camborne and Redruth and has an active mine permit valid until 2071, subject to certain planning conditions being addressed.
The mine permission area includes 26 former producing mines. Several companies attempted to revive the mine between 2001 and 2013 but due to poor market conditions the assets were put into administration in 2013.
Richard Williams, president and CEO of Strongbow, said: “It is our opinion that South Crofty represents one of the best tin opportunities currently available.
“Cornwall is a world class tin district and South Crofty is one of the best known mines in that district, with a mining history spanning over 400 years. Support for new mine development in the UK is demonstrated by the recent start-up of Wolf Minerals’ Drakelands tungsten and tin mine, located in the neighbouring county of Devon, the development of Dalradian Resources’ Curraghinalt gold project in Northern Ireland, and Sirius Minerals’ York Potash project in North Yorkshire.
“We view these developments as extremely positive for the development of South Crofty and this acquisition fits into our objective of acquiring high quality assets in the strategic metals space.”
Sally Norcross Webb, mining lawyer at Stephens Scown who acts for Strongbow, said: “It has been a complex negotiation process, but I am delighted that a deal has now been signed between Strongbow, Galena Special Situations Master Fund Limited and Tin Shield Production Inc.”