Cornish Metals have raised an estimated £40.5 million through a £25 million investment by Sir Mick Davis’ company Vision Blue Resources, alongside the UK placing and a Canadian subscription of approximately £15.5 million.
The net proceeds will reportedly advance the company’s South Crofty tin project in Cornwall, a former producing high-grade underground tin mine.
The contribution has been allocated for dewatering the mine, resource drilling, a feasibility study and an evaluation of potential downstream beneficiation opportunities.
The funds will also go towards on-site early works before a decision is made about potential construction.
Cornish Metals speculated that the mine holds potential for profit based on the upward trajectory of tin prices, which have risen from $25,000 per tonne to over $40,000 per tonne since March 2021.
The company anticipates demand will outstrip supply for tin, with the influx of requirements from the electronics, electric vehicle and renewable power industries.
“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,” said Cornish Metals CEO Richard Williams.
“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.”
Despite the optimism of the announcement, Cornish Metals saw its shares drop a whopping 9% to 25p at market close on Monday.