£56 Million Boost for South Crofty: Will This Revive Cornwall’s Tin Mining Legacy?

Cornish Metals Inc. has announced plans to raise a minimum of £56 million to advance and restart its 100%-owned South Crofty high-grade tin project in Cornwall. The funding will support crucial steps in bringing the mine back into production, including shaft refurbishment, dewatering, and early project works.

Government-Backed Investment

A significant portion of the funding comes from the National Wealth Fund Limited (NWF), a company wholly owned by HM Treasury. NWF has conditionally agreed to invest up to £28.75 million in Cornish Metals through the purchase of up to 359,375,000 new common shares at 8p per share. This investment is subject to potential scaling back, with NWF committing a minimum investment of £25 million.

Support from Vision Blue Resources

Vision Blue Resources Limited (VBR), which already holds around 25.95% of Cornish Metals, has agreed to participate in the fundraising to maintain its stake in the company. The company will subscribe for shares at the same 8p price, committing up to £18.28 million in total.

Additional Fundraising Measures

To further bolster funding, Cornish Metals is working with financial institutions Hannam & Partners and SP Angel as joint bookrunners, alongside Canaccord Genuity as a co-manager. These firms will help raise around £8.8 million through a conditional placing. A Broker Option could add up to £5.9 million, depending on investor demand.

Additionally, several company directors, excluding John McGloin, have invested personally, raising £127,805 through the purchase of 1,597,561 new shares.

Retail Investors Get a Chance

Existing retail investors will also have an opportunity to participate. A separate retail offer is expected to raise up to £3 million, with details to be announced soon. The offer is set to close on 31st January 2025, with final fundraising results confirmed after this date.

Why This Matters

The funds raised will help Cornish Metals move towards a final investment decision, expected by early 2026. The company plans to allocate the proceeds as follows:

• £13.3 million for mining and dewatering
• £17.2 million for early project works and long-lead equipment
• £5.1 million for project engineering
• £7.8 million to repay a Vision Blue credit facility
• £12.6 million for South Crofty site costs, land purchase, and corporate expenses

Bringing Tin Mining Back to Cornwall

Cornish Metals’ CEO Don Turvey emphasised the importance of this investment, stating:

“We are very pleased to welcome NWF as a major shareholder in Cornish Metals and to lead this fundraise alongside Vision Blue, demonstrating support for the Company and our plans to bring tin mining back to Cornwall.”

NWF CEO John Flint highlighted the broader significance of the investment:

“Critical minerals are not only an important driver of the UK’s transition to net zero, but also of the UK’s growth mission, providing opportunities to anchor important supply chains in the UK.”

Next Steps

The first tranche of new shares is expected to be issued and admitted to trading on AIM on 6th February 2025, subject to approval from the TSX Venture Exchange (TSX-V). The second tranche will require shareholder approval at a special meeting scheduled for 18th March 2025.

If successful, this funding could revitalise Cornwall’s mining heritage and establish South Crofty as a key player in the UK’s critical minerals sector.