South Crofty raises £135m, but one vote still stands in the way

The money is in. All £135 million of it. But before any of it reaches South Crofty, shareholders have to say yes.

Cornish Metals has confirmed it has conditionally raised £135 million (before expenses) to take its South Crofty tin mine project through to first production, which is targeted for mid-2028.

The fundraise launched on Tuesday (20 October) and has now closed, with 225 million new shares being issued at 60p each.

Where the £135 million came from

The bulk of the money came through direct subscriptions from named investors, with the rest from institutional investors and members of the public.

• £108.6 million through subscriptions
• £20.4 million through a placing with institutional investors
• £6.0 million through the retail offer, which was open to the public

Within the subscriptions, the National Wealth Fund put in £41.7 million and Vision Blue Resources £39.3 million. Leonidsport, a new investor, subscribed for £13.4 million. Glencore, which has already agreed to take South Crofty’s tin under an offtake deal, invested around £11.2 million. Some of the company’s directors and other investors added £3.0 million between them.

The National Wealth Fund and Vision Blue were already the company’s two largest shareholders. Their subscriptions effectively turn existing loans to the company, including the interest built up, into shares. Once the new shares are issued, the National Wealth Fund is expected to hold 29.50% of Cornish Metals and Vision Blue 28.58%.

Nine directors are among those buying in. Their stakes range from 16,666 shares to 200,000, with chief executive Don Turvey taking 33,333.

“A clear path to production”

Don Turvey said the fundraise completes the financing package for building South Crofty through to first tin in mid-2028.

He thanked existing shareholders Vision Blue and the National Wealth Fund for their continued support, and welcomed the new investors, including Glencore and Leonidsport. He said the company was also very pleased to see “such strong support from the retail community”.

“South Crofty is a world-class project, with the highest-grade tin of any asset not currently in production, and our focus now is on bringing that tin to market,” he said.

“We have a clear path to production, and the task ahead is to deliver our key milestones safely, on time and on budget. In doing so, we will re-establish tin production in the UK and create long-term, skilled jobs and economic benefit in Cornwall.”

Why the shareholder vote matters

None of this is final until shareholders approve it at a general meeting at 10am on Monday 9 November, at the offices of law firm Fieldfisher in London. A circular with the notice of the meeting is due to be posted to shareholders on Friday (23 October) and published on the Cornish Metals investor website.

The company has been clear about what is at stake. If shareholders vote it down, the fundraise won’t happen and there is no certainty that other funding would be available.

And there is a deadline. To draw down its Nordic Bonds, Cornish Metals has to complete an equity fundraise of at least US$161 million by 21 November, unless bondholders agree to extend that date. The company says that if it missed that condition, it would not be able to pay its debts as they fell due or carry on its business as it currently does.

The National Wealth Fund, Vision Blue and the directors, who between them hold 57.95% of the company’s current shares, have each given an irrevocable undertaking to vote in favour.

Shares back on the market

Trading in Cornish Metals shares was paused on 14 October while the fundraise was under way. It restarted at 7.30am this morning (Thursday 22 October).

If the vote goes through, the new shares are expected to start trading on AIM at 8am on or around Tuesday 10 November, the morning after the meeting.