Cornish Metals, an AIM-listed company focused on reviving an historic tin mine in Cornwall, has secured £52 million in credit facilities from its two largest shareholders: the government's National Wealth Fund and Vision Blue Resources. This funding will advance the South Crofty project near Pool, which the company acquired in 2016 and aims to bring into production by 2028.
Funding Details and Project Progress
The mine, which operated for over 400 years before closing in 1998 due to lack of investment and falling metal prices, will see the new capital used for underground mine development, shaft refurbishment, surface facilities, infrastructure, and general corporate purposes. Up to £16 million will also be allocated to the company's escrow account.
Don Turvey, chief executive of Cornish Metals, stated: "This funding provides the company with the financial runway to progress through to the final investment decision for the South Crofty project while continuing to advance and derisk the project by maintaining the high level of activities across site." He added that the support from the National Wealth Fund and Vision Blue underscores their commitment to restarting tin mining in Cornwall, providing a sustainable supply of this critical mineral.
Investor Interest and Strategic Moves
Turvey noted that Cornish Metals has been engaging with investment parties interested in financing the development of South Crofty, expressing satisfaction with the level of interest. The National Wealth Fund currently holds a 28.45% stake in the project, while Vision Blue owns 29.08%.
Previously headquartered in Canada, Cornish Metals completed its re-domiciliation to the UK last year and was admitted to AIM. In February, the company announced potential financing support from the US government after receiving a non-binding letter of interest from the Export-Import Bank of the United States (EXIM).
Last year, Cornish Metals reported "significant progress" at South Crofty, which is expected to generate yearly earnings of £70 million once operational. The funding marks a critical step toward reviving Cornwall's tin mining industry and securing a domestic supply of this essential mineral.
