Canada’s Strongbow Exploration pursues London listing to raise $34 million to hunt for tin in Cornwall
LONDON — Strongbow Exploration, the Canadian company that is seeking to revive tin production in Cornwall, southwest England, plans to join London’s AIM exchange for growing companies next month, it said on Monday.
It had previously told Reuters it would seek a London listing to raise development capital without giving dates.
“The company expects that admission will become effective in June 2018,” it said in a statement, adding it would also retain its Canada listing for now.
Strongbow is hoping the London listing will help to raise 25 million pounds (US$34 million) over the next 18 months to study the feasibility of resuming production, with a target date of 2021, at what it says is “one of the highest grade undeveloped tin projects globally.”
Since July 2016, Strongbow has held the rights to mine the South Crofty underground tin mine in Cornwall, which produced tin for centuries until low tin prices forced its closure in 1998.
Demand from the electronics industry, which needs tin to replace toxic lead in solder, combined with falling production in the major producing countries in the world — China, Malaysia, Indonesia and Peru — has helped to drive tin prices 60 percent higher since January 2016 to around US$21,000 per tonne.
British government officials have voiced support for Cornish mining as a means to boost a post-Brexit economy.
South Crofty could also be a source of lithium for electric vehicles.
A British company called Cornish Lithium, which will begin drilling at South Crofty next year, has an agreement with Strongbow that allows it to explore using Strongbow’s mineral rights, with Strongbow getting royalties from any lithium extracted.
In Canada, Strongbow shares have risen 60 per cent so far this year.
© Thomson Reuters 2018