South Crofty’s £135m moment, and the Glencore deal behind it

There’s now a target date for tin to come out of the ground at South Crofty again. Mid-2028. Getting there needs £135 million, and the money is being raised this week.

Cornish Metals has launched a proposed fundraise of around £135 million to take its South Crofty tin project through to production and restart mining in Cornwall.

The company says South Crofty is expected to support the creation of skilled jobs, investment in local supply chains and wider economic activity across Cornwall, during both the construction phase and once the mine is operating. First production is targeted for mid-2028.

Who is putting money in

The biggest new name is Glencore. The FTSE 100 mining company has conditionally agreed to invest about £11.2 million, buying 18,718,319 new shares at 60p each.

Two existing shareholders, the UK’s National Wealth Fund and Vision Blue Resources, are taking part through conditional direct subscriptions. The National Wealth Fund could account for up to around 29.5% of the total raised, while Vision Blue is subscribing for roughly its existing share of the company. Both totals will be confirmed once the fundraise closes.

Some of the company’s directors and other investors are putting in £1 million between them. The rest is being raised through a placing with institutional investors and a retail offer open to the public. None of the fundraise is underwritten.

A six-year deal for South Crofty’s tin

Alongside the investment, Cornish Metals’ wholly owned subsidiary South Crofty Limited has signed an offtake agreement with Glencore.

Under the deal, Glencore will take all of the tin concentrate produced at the mine for six years, starting from the beginning of commercial production. The two companies have also signed heads of terms for a possible revolving working capital facility of up to US$10 million from Glencore.

Don Turvey, chief executive of Cornish Metals, said the backing from Glencore, the National Wealth Fund and Vision Blue, along with the bond financing secured in May, showed “the strategic importance of the South Crofty project” to the UK and the wider Western supply chain for critical minerals.

He said good progress had already been made underground and on the surface, and the new money would allow the company to speed up development work and secure the remaining long-lead items the project needs.

How the money fits together

In May, Cornish Metals raised US$210 million through Nordic Bonds. That money is held in escrow and can only be drawn down once certain conditions are met. One of the main ones is completing an equity fundraise of at least US$161 million by 21 November 2026.

At today’s exchange rates, the £135 million raise is worth about US$188 million, so it would meet that condition if shareholders approve it.

Taken together with the company’s existing cash, the overall funding package comes to £302 million. Of that, £185 million is earmarked for capital spending on the South Crofty project. The company says it still needs some planning, environmental and other consents ahead of first production.

The retail offer

A retail offer opened this morning through RetailBook, giving members of the public in the UK a chance to take part. The key details from the retail offer announcement are:

• New shares are priced at 60p, a 41.2% discount to the closing price on 13 October 2026
• It’s open to new and existing shareholders who live in the UK
• The minimum investment is £250
• Applications go through RetailBook’s partner platforms, brokers and wealth managers, and can be made through ISAs, SIPPs and general investment accounts
• RetailBook isn’t charging commission on applications, although individual platforms may have their own fees
• The offer is due to close at 7pm this Wednesday (21 October), and may close earlier if it’s oversubscribed

The retail offer only goes ahead if the rest of the fundraise does. Details of participating partners are on the RetailBook offer page. This article is for information only and is not investment advice.

What happens next

The results of the fundraise are due to be announced first thing on Thursday morning (22 October).

Shareholders will then vote at a general meeting on or around Monday 9 November. If they don’t approve it, the fundraise won’t go ahead. If they do, the new shares are expected to start trading on AIM at around 8am on 10 November.

Full details are in the fundraising announcement on the London Stock Exchange, and more about the company is on the Cornish Metals investor website.

Trading in Cornish Metals shares has been paused since last week, and will stay that way until the results are out.

📷South Crofty mine. Credit: Cornish Metals