Cornish Metals Inc Plans £56 Million Fundraising for Growth

Cornish Metals Inc Embarks on Groundbreaking £56 Million Fundraising

Cornish Metals Inc, a dedicated mineral exploration and development firm, is taking bold steps towards the future. With the ambitious goal of raising a minimum of £56 million through a proposed fundraising initiative, the company aims to bolster the advancement of its flagship South Crofty project, a high-grade tin asset located in Cornwall.

Overview of the Fundraising Strategy

Following a continued commitment to harness the potential of the South Crofty mine, Cornish Metals is excited to introduce this new fundraising initiative. This effort underscores the Company’s strategic focus on not only revitalizing Cornwall's rich mining heritage but also contributing to modern supply chains essential for achieving energy transition goals. Central to this fundraising plan is the strategic investment by the National Wealth Fund Limited (NWF), through which up to £28.75 million is expected to be raised as part of the first tranche.

Strategic Investments from NWF and Vision Blue Resources

In this initial phase, the National Wealth Fund Limited, a government-owned entity, is slated to subscribe for up to 359,375,000 common shares at an issue price of 8 pence per share. This investment is contingent upon NWF’s commitment to contribute at least £25 million ahead of associated expenses. Additionally, existing major shareholder Vision Blue Resources (VBR) will also play a significant role. VBR has agreed to participate in this fundraising and will subscribe to an amount up to £18,280,550 to maintain its ownership stake of approximately 25.95%.

Engaging the Market: Joint Bookrunners and Retail Offer

Cornish Metals has appointed H&P Advisory Ltd and SP Angel Corporate Finance LLP as joint bookrunners, with Canaccord Genuity as co-manager for this fundraising initiative. The Company anticipates generating approximately £8.8 million through a conditional placing of shares with institutional and other investors.

Retail Offer Opportunity for Investors

In an effort to encourage participation from its existing retail shareholders, Cornish Metals is also set to conduct a retail offer aiming to secure an additional £3 million. This retail offer will be executed via the BookBuild platform, providing broad access to interested investors. Further details about this offer are expected soon, ensuring transparency and engagement with all shareholder groups.

Projected Utilization of Fundraising Proceeds

The proceeds from this comprehensive fundraising strategy are slated for various critical investment streams aimed at progressing the South Crofty Project. Notable allocations include £20 million directed towards initial capital expenditures, alongside additional funds allocated to mine dewatering, early project work, and the purchase of long-lead critical equipment. This structured financial roadmap is crafted to drive Cornwall's economic future while reinforcing the Company’s standing within the mining sector.

Company Leadership Perspectives

CEO Don Turvey expressed optimism about the fundraising, stating, "We are pleased to welcome NWF as a major investor alongside Vision Blue, highlighting our shared faith in reviving tin production in Cornwall, a critical step towards sustainable economies and energy sourcing. Tin plays a vital role in the energy transition, underscoring the importance of projects like South Crofty."
John Flint, CEO of NWF, echoed this sentiment, emphasizing the mission of promoting UK supply chains for critical minerals. "Our engagement in Cornwall presents an exciting avenue for job creation while supporting sustainability goals, ultimately enriching the UK’s growth trajectory," he stated.

Key Takeaways from the Fundraising Announcement

This fundraising effort is not merely about capital acquisition; it reflects a broader ambition to revitalize the mining industry while facilitating a progressive investment in local economies. Cornish Metals Inc. stands equipped to make significant advancements in its ongoing projects, particularly the South Crofty tin mine, characterized by its rich history and potential for sustainable mining operations.

Frequently Asked Questions

What is the purpose of the £56 million fundraising by Cornish Metals?

The fundraising aims to enhance the development of the South Crofty project, addressing critical capital expenditure needs and project advancement.

Who are the key investors in this fundraising?

The major investors include the National Wealth Fund Limited (NWF) and Vision Blue Resources (VBR), both committing significant capital to the initiative.

What will the funds be used for?

The proceeds will primarily be allocated to essential development works, including mine dewatering and project engineering studies associated with the South Crofty project.

When is the retail offer expected to be launched?

A separate announcement regarding the retail offer is anticipated shortly, providing specific terms and timing for current shareholders to participate.

How does the fundraising impact existing shareholders?

The fundraising allows existing shareholders to maintain their investment through participation rights and a dedicated retail offer, ensuring their voices and investments continue to shape the Company’s future.

About The Author

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