Cornish Metals kickstarts share sale to reopen historic tin mine
A Cornish mining company is seeking to raise £135m in an attempt to finance the reopening of the historic South Crofty tin mine and end the UK’s reliance on foreign imports. Cornish Metals, which is backed by the National Wealth fund, is selling shares to major institutional and strategic investors, as well as UK retail [...]
Cornish Metals, a Cornish mining company backed by the National Wealth Fund, is launching a share sale to raise £135 million and reopen the historic South Crofty tin mine. The funds raised will help the UK reduce its dependence on foreign tin imports. The shares can be purchased for £0.60 each, a 41.2% discount from the October 13 share price.
Institutional and strategic investors along with UK retail investors are invited to participate in the offering, with a minimum investment requirement of £250 per investor. If the share sale falls short of the £135 million target, it will be voided. Cornish Metals already issued £160 million in senior Nordic bonds, but cannot draw on the funds until it raises at least £123 million in new equity.
The total estimated capital expenditure required for developing the mine to commercial production levels is approximately £185 million, which the fundraising will cover. The mine, closed since March 1998, is expected to produce 4,700 tonnes of tin annually over the next 14 years if production starts in mid-2028. Tin is classified as a critical mineral essential for electronics, solar power, and AI hardware.
The South Crofty tin mine, which has been underwater for nearly 30 years, has been identified as a flagship project crucial for ending reliance on foreign tin imports. The National Wealth Fund has invested £63.6 million in the company to support the reopening of the mine, while Glencore has pledged £11.2 million and Vision Blue £70 million.
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