We describe the design and development of a scanning tunneling microscope (STM) which can operate at temperatures down to 240 mK and in magnetic fields up to 7 T with high spatial and energy resolution. The compact and rigid STM head is mounted directly on a low vibration, single shot, He3 refrigerator. This refrigerator can be operated at its base temperature continuously for several days before the He3 needs to be recondensed. The system is equipped with a sample transport manipulator from room temperature, and a cleavage device at low temperature, so that the cryogenic ultrahigh vacuum condition inside the cryostat can be utilized. A superconducting magnet provides a magnetic field of up to 7 T at the sample along the STM tip direction. Test results have shown that, at the base temperature, this instrument has better than 0.5 pm z-direction resolution in imaging mode, and better than 20 μV energy resolution in spectroscopy mode.