Work on Newlyn Art Gallery's long-awaited development scheme is set to begin this winter, with the news that £3 million of funding has finally been obtained.

The proposed scheme will see the refurbishment and extension of the historic gallery at Newlyn - and the creation of a new gallery space, education centre, shop and cafe at the Old Telephone Exchange building in Penzance.

The extension and refurbishment of the Newlyn Gallery will enable it to build on its own high reputation for exhibitions and learning programmes, while the Exchange will be a bright new landmark for Penzance, offering local, national and international shows and learning opportunities open to all.

"The funding has been agreed for both schemes on the basis of sensitive and imaginative designs produced by architects Stuart McKnight, Simon Usher and Gillian McInnes of MUMA," said a spokeswoman for the gallery.

"Planning permissions were obtained back in early 2004, but raising the necessary capital funding has taken a long time.

"With substantial contributions from the Arts Lottery Capital Programme and the European Regional Development Fund's Objective One Programme, most of the £3 million required will come from those two sources.

"Penwith Council had the vision and commitment to give substantial support to this project from the very beginning and its support was the key to the main funding."

A further £150,000 was donated by the Garfield Weston Foundation, the Hedley Trust and the Foyle Foundation. The county council also contributed to complete the funding package, along with the Heritage Lottery Fund and the Foundation for Sport and the Arts.

"Detailed design work has been carried out and both projects will be offered for tender this winter," said the gallery spokeswoman.

"If all goes well, construction work could begin in January 2006. The target date for the launch of both galleries is February 2007."

Gallery chairman Charles Hancock said: "The gallery has waited a long time for this and is full of dynamic plans for the programme in the future. These generous capital grants will enable us to serve our public well in two fine buildings."

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