Mining company Cornish Metals is aiming to raise £40.5m from investors including a former Tory party chief executive to restart tin mining at Cornwall's South Crofty mine..
Canadian-headquartered Cornish Metals, which trades on the Stock Exchange’s AIM, said it is to receive £25m from Vision Blue Resources (VBR), a vehicle founded by the ex-Conservative treasurer and chief executive Sir Mick Davis.
Mr Davis, who was formerly head of mining group Xstrata, created VBR to invest in green energy-related metal and mineral resource companies.
Cornish Metals also aims to raise £15.5m from a private share placing to existing and new UK institutional investors as well as a subscription by existing Canadian investors and eligible accredited private investors.
It will use the money raised to develop the South Crofty tin project - a fully permitted, former producing high-grade underground tin mine in Cornwall.
Work will include dewatering of the mine, resource drilling, completion of a feasibility study, evaluation of further downstream beneficiation opportunities, and on-site early works in advance of a potential construction decision.
Cornish Metals said demand for tin is expected to increasingly outstrip supply in coming years driven by growing demand from the electronics sector, EVs, and renewable power, especially solar cells.
The fund raise is subject to receipt of shareholder approvals and the approval of the Canadian stock exchange TSX Venture Exchange.
Richard Williams, chief executive of Cornish Metals, said: “This announcement marks a transformational moment for the company, its shareholders and all stakeholders in relation to the redevelopment of South Crofty, the company's principal asset.
“It is testament to the quality of both the project and the company that an investor of the calibre of VBR is proposing such a significant investment, and we are delighted to welcome them as a major strategic shareholder.
“Tin is essential to anything electronic, including electric vehicle (EV) components, computing, 5G, robotics, renewable power generation, and the electrification of the economy, making South Crofty a strategic asset with the ability to provide a secure, traceable, sustainable supply of this important metal.
“We are excited to embark on this new chapter of Cornwall’s mining history which will see South Crofty make a significant contribution to the local and UK economy, with the potential to create up to 1,000 direct and indirect jobs, as well being at the forefront of the drive towards net zero.”
Mr Davis, chief executive of VBR, said: “VBR was founded to accelerate the responsible supply of commodities necessary to facilitate the transition to clean, green energy. The investment in South Crofty has the potential to deliver significant tin production to meet an expected supply shortfall and enable the deployment of new, green technologies. At the same time, restarting production at an historic underground mine, within the existing footprint, and with the benefit of modern production techniques, provides an opportunity to minimise environmental and other impacts whilst creating significant benefits for local communities.”
