South Crofty’s Canadian owner has announced details of fresh investment in the tin mining project.
Strongbow Exploration has agreed to sell a 1.5% ‘Net Smelter Returns royalty’ to Osisko Gold Royalties Ltd on all metals and minerals that might be produced at South Crofty for C$7.17 million.
Additionally to the royalty sale, Strongbow intends to complete a ‘non-brokered private placement of common shares’ at C$0.14 per share for gross proceeds of up to C$2 million. Osisko intends to purchase 9.5 million common shares at a total cost of C$1.33 million.
Proceeds from both the royalty sale and the private placement will be used, subject to receipt of permits, to construct a water treatment plant at South Crofty and for general working capital.
Richard Williams, president and CEO of Strongbow, said: “This agreement reinforces Osisko’s support of the South Crofty tin project and provides Strongbow with strong momentum as we advance the project to a production decision.”