Cornish Metals Takes Final Decision to Build South Crofty Tin Mine

Cornish Metals (AIM: TIN), which is developing the South Crofty tin project in Cornwall, has taken its final investment decision (FID), with first tin expected in mid-2028. Shareholders also approved the £135m fundraising that pays for the build.

In a delayed quote at 1:47pm London time today, the shares were 62p, down 0.8% from Friday’s 62.5p close, in a day range of 62p to 63p. That is just above the 60p raise price and about 45% below the 113p close of the 7th of August.

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The board’s FID, its formal go-ahead to build, was announced at midday alongside the General Meeting result. Votes covered about 67.8% of issued capital. The resolution to allot shares passed with 99.82% in favour, and the one to disapply pre-emption rights, which lets new shares go to chosen investors first, with 99.76%.

CEO Don Turvey called it “the most significant step in Cornish Metals’ history”, adding: “With the fundraise approved, we have the funding in place to take the mine through construction to first production.”

The large price move came earlier. The shares closed at 102p on the 14th of October and at 70p on the 22nd of October, on volume of 4.14m, after the 60p raise was announced in late October. They have drifted down since.

The raise comprises 225m new shares. After they are admitted, the National Wealth Fund, a UK government-backed investor, will hold 29.50% of voting rights and Vision Blue Resources 28.58%.

Admission to AIM, when the new shares start trading, is expected at 8am on or around tomorrow, together with 6,216,446 milestone shares that settle a final US$5m owed to South Crofty’s previous owners, triggered by the FID. Leonidsport’s nominee, Kyril Louis-Dreyfus, joins the board as a non-executive director.

Mr Turvey said the focus now is “delivery, building South Crofty safely, on schedule and within budget”. Construction risk remains.