Tectonic Gold [AQSE:TTAU], the Aquis-listed, Australian gold exploration company announced earlier this week that it had signed a non-binding heads of terms agreement to acquire Devon and Cornwall-focussed exploration company, Godolphin Exploration. Tectonic plans to complete the transaction as a £6.3m all-share deal.
The Sydney-headquartered explorer is, as previously reported, a specialist Intrusion Related Gold System (IRGS) explorer with three main projects. Specimen Hill/Mount Rainbow, east of Biloela in central Queensland, Last Chance & Day Dawn in northern Kazakhstan and the Maxwellion project also in Queensland.
- What’s going on at Contango Ore?
- New Frontier Minerals finds Rare Earths indicators at Harts Range
- Share Tip: Producing gold miner looks set to double its output
Godolphin, which is currently in private hands, mainly operates in the English counties of Devon and Cornwall, a region with a storied history of mining. It is primarily prospecting for tin and copper in its two projects: the Duke of Leeds, an historic tin and copper mine in Cornwall, which had been worked since the 1500s, closing in 1906; and the Devon Great Consols, a copper and tin project in Devon that closed in 1903.
Founded in 2021, Godolphin integrates historical geological data, modern terrain analysis, satellite imagery, and geophysical data to identify and consolidate mineral rights, and has the rights to model 338 properties in the South West. Godolphin said it has advanced Devon Great to the point where it is ready to start the exploration drilling of a 3.5km mineral lode and has a 10-year option on the tenement. At the Duke of Leeds, which the explorer has a 10-year option on, extendable to a consecutive 10-year option, Godolphin has identified the historic tin mine, Great Wheal Vor, as a target for exploration drilling.
Change of name, change of focus
Should the transaction complete – which Tectonic’s management said is in the final stages of due diligence – Godolphin’s shareholders will own around 63% of the share capital of the enlarged, combined entity. The company will also change its name to Tamar Minerals Plc. It seems that the placeholder has already been set, with a landing page for a new corporate website promoting: “Critical minerals for a green future” and a registration at the same address as Tectonic’s registered London office filed at Companies House. It is likely the newly named exploration and development company will continue to reside on the Aquis Exchange.
The company has been light on detail as to how the newly-formed Tamar Minerals will proceed, apart from saying that Tectonic will continue its exploration of Specimen Hill, but indicating that the new company’s focus will switch from Australia to South West England in an attempt to revive the Cornish mining sector. At least Tectonic’s team will appreciate the surf on the South West coast, and may not feel entirely homesick.
Increasingly busy mining jurisdiction
They also won’t be lonely, as Cornwall is becoming a bit of an exploration hub after a century’s worth of being a mining mausoleum decorated by the skeletal remains of the county’s proud mining past. Cornish Metals [LON:CUSN] out of Vancouver sold up its Canadian assets last year to wholly focus on its tin prospects in the Duchy. They are joined by private explorers Cornish Lithium, prospecting for battery minerals, and Africa and Latin America copper veteran and the force behind First Quantum Minerals [TSX:FM.] Clive Newall, a darling of investors. Newall has left behind a Panamanian headache and the Zambian copperbelt for the home comforts of a pasty and a bracing seaside walk to found Cornish Tin, which seems to be also operating on Great Wheal Vor.
It’s unclear as to Godolphin’s intentions for Great Wheal Vor. From its own materials, the company implies that it is pushing ahead with exploration, but under the caveat: “Godolphin might seek to abandon the project in full compliance with all planning rules and regulations stipulated by the GPDO [General Permitted Development Order] and our agreement with the land owner; Bring in a partner to share the exploration and development risk; Develop and mine the project ourselves; or sell the project/mine to another company.”
Godolphin was asked about its relationship with Cornish Tin at a Parish Meeting in October 2023, with management responding: “We have no corporate relationship with Cornish Tin and nor do we expect to have one in the future. Alan Stephens (chief executive) has a personal and previous employment relationship with the chairman of Cornish Tin, Clive Newall.”
This could well shape up to be an interesting face-off, maybe reminiscent of the conflict between the Houses of Poldark and Warleggan in the novels by Winston Graham, but with Cornish Tin, Godolphin Exploration and now Tectonic Gold all focussing on Great Wheal Vor, it seems that sooner, rather than later the famed mine might awaken from its slumber, with the economic bounty for Cornwall that has been missing for generations.
Brett Boynton, managing director of Tectonic Gold said in a statement to the market: “We are excited about acquiring Godolphin and the significant opportunities it presents. The vast amount of data and intelligence gathered on Devon and Cornwall’s mining potential is compelling, and we see substantial upside for our shareholders. We look forward to welcoming the 32 Godolphin shareholders to Tectonic, many of whom bring valuable experience in mining investment and development.”
Tectonic’s shares opened the week at 0.15p, down 25% over one year, ranging from 0.125p to 0.425p over a 52-week period. The company has a market cap of £1.4m. The acquisition of Godolphin by Tectonic signals a strategic shift, both in geography and focus, for the Australian-based explorer. With a new identity as Tamar Minerals, the company appears poised to capitalise on the resurgence of mining activity in Cornwall and Devon. However, questions remain over its plans for key assets such as Great Wheal Vor, where rival interests may complicate its ambitions. As the deal nears completion, investors will be watching closely to see whether Tamar Minerals can breathe new life into the South West’s historic mining sector and deliver on its promise of “critical minerals for a green future.”
