As it attempts to revitalize a tin mine shut down for 20 years, Strongbow Exploration is seeking a spot on the London Stock Exchange’s AIM market.
The AIM is geared at small companies on the rise, and the company expects to be admitted to the market sometime in June. Strongbow is currently focused on its South Crofty underground tin asset in Cornwall in the UK, which it acquired in July 2016.
While the property has production records that date back to 1592, it closed in 1998. Now, however, the company is putting its faith into a recently reinvigorated tin market — prices of the metal have increased 60 percent since 2016 and currently sit around $21,000 per tonne.
“Since , the dynamics of the global tin industry have changed substantially and South Crofty has the potential to become an operating mine once again,” a press release from the company reads.
In the statement, Strongbow says South Crofty will require an investment of GBP 25 million (US$34 million) over the next 18 months to “progress to a production decision.” If all goes as planned the company will recommence production at the project in 2021.
A 2016 resource estimate for South Crofty splits the asset into two sections: the lower mine and the upper mine.
Strongbow’s current focus is the lower mine, which has an indicated resource of 1.66 million tonnes grading 1.81 percent tin for 30,000 tonnes of contained tin. Its inferred resource stands at 738,000 tonnes grading 1.91 percent tin for 14,100 tonnes of contained tin.
Although tin demand is expected to remain steady over the coming years, supply will likely drop over the next four to five years as heavy producers like China, Indonesia and Peru see the effects of gradual declines in production.
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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.