Cornish Metals (AIM:TIN) has proposed a £135 million ($257.59 million) equity raising to develop its South Crofty Tin Project in Cornwall, UK, alongside a six-year tin concentrate offtake agreement with Glencore (ASX:GLC).
Under the agreement, Glencore will purchase 100% of tin concentrate produced at South Crofty for six years from the start of commercial production, currently targeted for mid-2028.
Glencore has also conditionally committed £11.2 million to the raising, subscribing for 18.72 million new shares at £0.60 each.
Existing investors Vision Blue Resources and the UK’s National Wealth Fund are also expected to participate, with the latter potentially contributing up to 29.5% of the total raising.
The financing comprises an institutional placement, direct subscriptions, and a retail offer, with shares priced at a 41.2% discount to the 13 October closing price.
Cornish intends to combine the proceeds with existing cash and previously arranged bond financing to fund mine development through to production.
The proposed funding package totals approximately £302 million, including £155 million from the bond issue and existing cash resources.
The raising remains subject to shareholder approval, with a general meeting expected around 9 November. Admission of the new shares to trading is targeted for 10 November.
South Crofty is undergoing dewatering, shaft refurbishment, and surface construction as Cornish works towards restarting tin production.
The company is focused on redeveloping the historic underground mine, which it expects to provide a new domestic source of tin for the UK and European markets.
Write to France Pinzon at Mining.com.au
Main image: Cornish Metals
