Cornish Metals nets $100M for South Crofty tin project

Cornish Metals (LSE: CUSN; TSX-V: CUSN) announced on Tuesday that it has successfully raised about £56 million ($100.2 million) through a fundraising effort involving the issuance of 700 million new common shares. The funds will support the reopening of the South Crofty tin mine in southwest England.

The fundraising attracted participation from existing shareholders like Vision Blue and new investors, including the U.K.’s National Wealth Fund, the company said.

“Having achieved numerous important milestones in the last year, including the progress of mine dewatering and shaft refurbishment, as well as completion of a robust Preliminary Economic Assessment, this financing enables the company to maintain the strong momentum as we continue to progress towards a restart of tin production at South Crofty,” Cornish Metals CEO Don Turvey said.

Cornish Metals has spent the last eight years working on reopening the past-producing South Crofty tin mine. The operation was shut in 1998, following more than 400 years of almost continuous production.

South Crofty was the last tin mine in Europe when it closed. Several companies attempted to revive the flooded mines between 2001 and 2013, but due to persistently poor market conditions, the assets were put into administration in 2013.

The new South Crofty mine is expected to produce 49,310 tonnes of tin metal in concentrate over its productive life, peaking at over 5,000 tonnes in year four. 

The goal is achieving first tin production in 2026, as Cornish Metals has already obtained permission for underground mining until 2071, and has also secured the environmental permit to dewater the mine.

Shares of Cornish Metals gained 3.4% to 15¢ in early afternoon trading in Toronto on Tuesday. The miner has a market capitalization of $80.2 million.