TSX-V-listed Strongbow Exploration is raising capital to fund a drilling programme at its South Crofty tin project, in the UK, announcing on Thursday plans to raise $2-million through a private placement.
The company will place 40-million units, priced at $0.05 each.
The drilling programme will not only aim to expand the mineral resource but also involve infill drilling, required to complete a feasibility study on the project without dewatering the mine.
NYSE- and TSX-listed Osisko Gold Royalties will purchase 20-million units. Assuming the placement is fully subscribed, Osisko will hold shares representing 34.6% of the company's issued capital.
South Crofty is an iconic former producing copper and tin mine located in the towns of Camborne and Pool, in Cornwall, England. The project received an underground permission (mining licence) in 2013, which is valid until 2071, and planning permission to construct a new process plant in 2011.
In October 2017, Strongbow secured a water discharge permit allowing for the dewatering of the now flooded mine workings.