Cornish Metals targets £135 million fundraising to develop tin mine with Glencore participation
Key Facts
Cornish Metals announced a proposed conditional fundraising targeting about £135 million before expenses to develop the South Crofty tin project. The company said in its announcement that Glencore had conditionally agreed to participate by subscribing for about £11.2 million of its shares. The proposed fundraising is part of efforts to develop the mine, while the release of proceeds from bonds the company previously issued remains subject to conditions including raising equity funding. The UK's National Wealth Fund may subscribe for up to about 29.5% of the total amount subscribed in the fundraising. The transaction is subject to shareholder approval, while the company's arrangement with Glencore includes an offtake agreement for the mine's tin concentrate production.
Cornish Metals set the issue price of the new shares at 60 pence each, according to the official fundraising announcement. The price represents a 41.2% discount to the closing mid-market price in the last session before trading was suspended under the capital access window, according to the retail offer announcement. The fundraising includes a retail offer, for which the company requires eligible investors to be resident and physically present in the United Kingdom. The company previously completed a £57.4 million fundraising in March 2025, according to its annual results. That transaction was anchored by the UK's National Wealth Fund and Vision Blue Resources.
Under the offtake agreement, Glencore is committed to buying 100% of the tin concentrate produced at South Crofty, according to Cornish Metals' announcement. The agreement runs for 6 consecutive years, starting when the mine begins commercial production. The companies also signed heads of terms for a potential revolving working capital facility of up to $10 million. The potential facility would finance working capital, alongside Glencore's conditional subscription for Cornish Metals shares. The company described the nature of the project in its annual results, saying that "restarting a historic underground mine is a complex and capital-intensive process".
The earlier financing package includes $210 million of senior secured bonds, according to the company's interim results. The bonds carry a fixed interest rate of 13.5% a year, while their proceeds remain in escrow. Conditions for releasing those proceeds include raising at least $161 million in equity funding. The company reported a loss after tax of £5.5 million for the interim period, compared with £3.5 million in the first half of 2025. Cornish Metals attributed the increased loss to interest on the bonds and shareholder facilities, according to its interim results statement.
Cornish Metals said in its latest operational update that mine dewatering had progressed beyond 400 metres below the surface. Work under way includes dewatering and shaft refurbishment, according to the same update. The company aims to advance this work to a depth of about 730 metres below the surface during the first half of 2027. It expects to produce about 4,700 tonnes a year of tin contained in concentrate during the first 5 years of full production. The production estimates form part of a plan based on an initial mine life of 14 years, according to the company's forecasts in the operational update.
The next milestone in the offer timetable is the expected close of the retail offer at 7 p.m. London time on 21 October 2026. The company said in the offer announcement that participation could close before that deadline. Shareholders are then expected to vote on the approvals required for the transaction at a meeting expected to be held on or around 9 November 2026. The offer requires their approval, according to the terms announced by Cornish Metals. The new shares are expected to be admitted to trading on London's Alternative Investment Market on or around 10 November 2026, according to the announced timetable for completing the offer.