Strongbow Exploration uses a novel way to raise finance for their Cornish tin mine

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Announced a ‘synthetic offtake deal’ with US based Orion Mine Finance, where Orion will make an equity investment of at least US£3 million, in exchange for a 5% of tin production for 10 years offtake deal.

 

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Keith Russ, a technical service engineer of the South Crofty Tin Project, stands in a mining tunnel at South Crofty tin mine in Redruth, U.K., on Thursday, Aug. 11, 2016. Strongbow Exploration Inc., who the bought mine last month, could have the mine in production by 2019 or 2020, delivering 20 tons of tin a day, according to Chief Executive Officer Richard Williams. Photographer: Simon Dawson/Bloomberg

 

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Announced a ‘synthetic offtake deal’ with US based Orion Mine Finance, where Orion will make an equity invstment of at least US£3 million, in exchange for a 5% of tin production for 10 years offtake deal.
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Strongbow is the owner of South Crofty, the iconic former-producing copper and tin mine near Camborne, Cornwall. The company plans to bring the mine back into production following a proposed dual listing on London’s AIM market.

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The offtake provides for the sale to Orion of 5% of the next 10 years of tin production from South Crofty, through the delivery of LME tin warrants representing tin refined to LME-Approved Brands, rather than the physical tin.

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The agreement is conditional on Orion making an equity investment of at least US$3 million in Strongbow, as part of the company’s planned AIM fundraising.