28 Mar Cornish Metals reels in strategic investment from Sir Mick Davis
Canadian minerals explorer Cornish Metals has announced plans to raise up to £40.5 million, including a £25 million strategic investment by Sir Mick Davis’ Vision Blue Resources, to help advance the South Crofty tin project in the UK’s Southwest.
Vision Blue was founded by former Xstrata chief executive Davis to invest in clean energy-related metal and mineral resource companies. The £25 million offering will equate to a 27.2% stake in Cornish Metals and the company will have the right to nominate one person to the board.
“This announcement marks a transformational moment for the company, its shareholders and all stakeholders in relation to the redevelopment of South Crofty, the company’s principal asset,” said Cornish Metals chief executive Richard Williams.
“It is testament to the quality of both the project and the company that an investor of the calibre of Vision Blue Resources is proposing such a significant investment, and we are delighted to welcome them as a major strategic shareholder.”
TSX and AIM-listed Cornish Metals said the remaining £15.5 million will be raised via a private placing to existing and new UK institutional investors as well as a subscription by existing Canadian investors and eligible accredited private investors.
The past producing South Crofty mine needs dewatering and further resource drilling, in addition to Cornish Metals completing a feasibility study in advance of a potential construction decision.
Tin prices have surged by 60% since March 2021, with demand from the electric vehicles and renewable power sectors set to increasingly outstrip supply.