VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 17, 2016) - Strongbow Exploration Inc. (TSX VENTURE:SBW) is pleased to announce that it has reached an agreement whereby Strongbow has the right to acquire, from administration, a 100% interest in the South Crofty Tin Project and associated mineral rights in Cornwall, UK.
Richard Williams, President and CEO of Strongbow states; "Cornwall is a world class tin district with a rich mining history spanning over 400 years, and South Crofty is one of the best known past producing mines in the district. We believe that South Crofty represents one of the best tin opportunities currently available globally. Strong support for new mine development locally, and in the UK in general, is demonstrated by the recent start-up of the Drakelands tungsten-tin mine, owned by Wolf Minerals and 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 potential future re-development of South Crofty. We are very pleased to announce today's acquisition, which fits into our objective of acquiring high quality mining assets in the strategic metals space."
Highlights
Background
Western United Mines Ltd. (in Administration) and Cornish Minerals Limited (Bermuda) (collectively the "Companies") hold the rights to the South Crofty underground mine permission area, plus an additional mineral rights over a further 7,500 Ha located in various parts of Cornwall, UK. The Companies were placed into administration in 2013 to protect the assets.
An agreement has been signed between Strongbow, Galena Special Situations Fund (the only secured creditor) ("Galena"), and Tin Shield Production Ltd. (a private company that will forego its option with Galena to acquire the project) ("Tin Shield").
The material terms of the agreement are as follows, all references to currency being in Canadian dollars unless otherwise specified:
About South Crofty
The South Crofty tin project is located in the towns of Pool, Camborne, and Redruth in the county of Cornwall, SW England, approximately 465km drive west of London.
There has been tin mining in Cornwall since at least 2300 BC. The South Crofty commenced large scale production in the mid 17th century. The mine managed to continue operations until it shut down in 1998 following the tin price collapse of 1984.
Several companies attempted to revive the mine between 2001 and 2013. Significant advances were made, primarily the agreement to secure a site for future mill construction, and the grant of a mining permit which is valid until 2071, subject to certain planning conditions being met. Unfortunately, the timing of the mine permit grant coincided with the current poor market conditions in the resource sector and the assets were put into administration in 2013.
The mine has seen production from near-surface copper mineralization and deeper tin-only mineralization. The focus for Strongbow will be to evaluate the deeper tin-only mineralization that occurs primarily from a depth of 400m below surface.
NI 43-101 Mineral Resource Estimate
Strongbow has commissioned a NI 43-101 Mineral Resource Estimate, which is expected to be published within 2 weeks of this news release.
Required Approvals
Completion of the transaction is subject to a number of conditions, including Galena having provided an unconditional and absolute discharge and release of its security, the Companies having exited administration and approval of the TSX Venture Exchange.
Qualified Person
Richard Williams, P.Geo. (BC), President & CEO of Strongbow and a Qualified Person under NI 43-101, has reviewed and approved the contents of this news release.
ON BEHALF OF THE BOARD OF DIRECTORS
Richard D. Williams, P.Geo
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains "forward-looking statements" including but not limited to statements with respect to Strongbow's plans to acquire the South Crofty tin project, Strongbow's ability to reach agreement for the settlement of secured and unsecured creditor claims which are a condition to the Companies exiting administration, the timing to complete an updated NI 43-101 technical report for the project, Strongbow's ability to obtain an increase to the water discharge permit for the South Crofty tin project, its ability to deliver a positive feasibility study on the project, the commencement of commercial production from the South Crofty tin project and the estimated future net present value of the South Crofty tin project, the availability of financing for future cash payments, ongoing maintenance costs and future development work at the South Crofty tin project, in addition to the estimation of a mineral resource and the success of exploration activities.
Forward-looking statements, while based on management's best estimates and assumptions, are subject to risks and uncertainties that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to receipt of regulatory approvals, the successful integration of acquisitions; risks related to general economic and market conditions; risks related to the availability of financing; the timing and content of upcoming work programs; actual results of proposed exploration activities; possible variations in mineral resources or grade; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; changes in national and local government regulation of mining operations, tax rules and regulations.
Although Strongbow has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Strongbow undertakes no obligation or responsibility to update forward-looking statements, except as required by law.
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