Strategic Minerals (AIM:SML) said the US Department of War has invested $9.25m in its wholly owned subsidiary Cornwall Resources to accelerate the Redmoor tungsten-copper-tin project in Cornwall.
The AIM and US OTC-listed mineral exploration and production company said the funding will push CRL beyond its previous pre-feasibility milestone, targeting a full definitive feasibility study as the final economic step before a final investment decision.
Redmoor is a tin-tungsten-copper deposit where infill drilling has surpassed 5,000 metres of a 22,500-metre programme launched this year, part of a wider push funded by an £8.7m raise completed in January and UK grant support.
An updated resource estimate in May put Redmoor's inferred resource at 17.4m tonnes at 0.65% WO3 equivalent, with an after-tax net present value of $1.54bn at an 8% discount rate.
The investment is non-dilutive, carries no restrictions on future funding or offtakes, and is structured as a cost-shared prototype agreement rather than a conventional grant, awarded through the Defense Industrial Base Consortium's critical minerals programme.
It will fund resource infill and expansion drilling, metallurgical and engineering studies, and pre-site development work aimed at fast-tracking underground mining, with the programme targeting completion of technical and commercial work for a final investment decision within 32 months of initiation.
"We believe the strengths and investment case for Redmoor have been clearly demonstrated through this investment," said executive chairman Charles Manners.
CRL managing director Dennis Rowland said the funding "helps eliminate funding uncertainty and risk between Redmoor's feasibility development stages".
The Project Execution Plan governing milestones, cost-sharing and payment arrangements is expected to be finalised within 60 days.