Cornish Metals (AIM:TIN) has secured a £52 million ($97.05 million) credit facility with the National Wealth Fund and Vision Blue Resources to support the development of the South Crofty Tin Project in the UK.
The funds will be used to credit the escrow account which has been set up in connection with the bonds, as well as underground mine development and shaft refurbishment, surface facilities and infrastructure, and general working capital.
CEO Don Turvey says this funding provides Cornish Metals with the financial runway to progress through to a final investment decision.
“It also signals the National Wealth Fund and Vision Blue’s continued support for Cornish Metals and our goal to restart tin mining in Cornwall, providing a sustainable supply of this critical mineral to the West,” Turvey says.
“As part of the project financing process the company has been engaging with investment parties, including strategic offtakers and institutional investors, interested in financing the development of South Crofty, and we are pleased with the level of interest we are receiving, further highlighting the significance of this project.”
The National Wealth Fund and Vision Blue are shareholders in Cornish Metals, holding 28.45% and 29.08%, respectively.
South Crofty
Cornish Metals is working toward reopening the historical underground tin mine, which is located in the Central Mining District of Cornwall, UK.
Tin mining in this region dates back to 2,300 BC. Large-scale production at South Crofty first started in the mid-1600s. The mine has been in operation intermittently since then, with the last closure in 1998 coming after a prolonged period of depressed tin prices.
Historical production between 1700 to 1998 totalled more than 450,000 tonnes of tin from the Central Mining District.
The project is permitted, having underground permission valid until 2071. The area covers 1,490 hectares and includes 26 former producing mines.
Cornish Metals is a mineral explorer and developer focused on tin and other critical minerals in the UK.
Write to Aaliyah Rogan at Mining.com.au
Images: Cornish Metals
