A Canadian company working to revive a historic tin mine in Cornwall has seen its operating expenses double over the last year, despite securing major funding including from the British government.
Cornish Metals said the rise in costs to CAD$8.8m was due to investor and media engagement, fees associated with corporate activity and the termination settlement of its former chief executive.
The company also reduced its cash in the bank over the year to December 31, 2024, to $9.5m – down from $25.7m the year previously.
Costs arose from investing in or replacing equipment for the South Crofty mine project, buying land next to the surface infrastructure, and work on dewatering, the business said.
Cornish Metals is working to bring the Pool-based mine, near Redruth, back into working order after 27 years. South Crofty was closed in 1998 following more than 400 years of continuous production and was acquired by the company in 2016.
On Thursday, March 13, the business said it had secured funding totalling £57.4m from investors including the UK government’s National Wealth Fund (£28.6m) and existing shareholder Vision Blue (£18.1m), with a further £10.7m from existing shareholders and new investors, including £1.4m from a retail offer.
The fundraise is expected to provide finnancial runway through to the end of Q1 2026 and will enable the company to further de-risk the South Crofty tin project and advance it towards a formal final investment decision.
Don Turvey, chief executive and director of Cornish Metals, said: “2024 was another important year for Cornish Metals and the advancement of South Crofty towards production with activity levels on-site remaining high and momentum building.
“Notable milestones achieved include the completion of the South Crofty PEA that confirms the project’s potential to be a low-cost and long-life tin mining operation.”
Mr Turvey said teams were working “around the clock” refurbishing the mine’s NCK shaft as they continue to progress deeper down into the mine.
The fundraise, he added, would enable Cornish Metals to maintain its “strong momentum” by delivering milestones expected in the coming year including the completion of mine dewatering and shaft refurbishment, the start of early project works, placing orders for long-lead items, and concluding the project finance process.
Last year, Cornish Metals sold off its Canadian mine project for $4.7m of which US$1.5m is a deferred consideration due by August 2025.
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