Canadian mineral exploration company Cornish Metals is set to raise up to £40.5m, to advance the South Crofty tin-copper mine located in Cornwall, UK.
The company will receive £25m investment from Vision Blue Resources (VBR), a vehicle created by Mick Davis to invest in sustainable metal and mineral resource companies.
It will raise the remaining £15.5m through a private placing to UK institutional investors, subscription by existing Canadian investors, and eligible private investors.
Cornish intends to use the funds to advance the South Crofty tin project, a fully permitted, previously producing high-grade underground tin mine.
The funds will be utilised for the completion of a dewatering programme and a feasibility study as well as evaluate further downstream beneficiation opportunities, along with on-site early works.
The work at South Crofty is expected to make a significant contribution to the local and UK economy, potentially creating up to 1,000 direct and indirect jobs.
Cornish Metals CEO Richard Williams 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 Vision Blue Resources 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.”
South Crofty was in operation until 1998, which has significant mine infrastructure still in place, including several mine shafts that can be used for future production.
It has one of the world’s highest-grade tin mineral resources, and has the potential to be amongst the lowest cost producers globally.
Also, the operation is located within an industrial area that has access to the national electricity grid and existing transport infrastructure.
VBR CEO Sir Mick Davis 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.”
