Australia’s largest tin producer, Metals X Limited (Metals X), purchased 60 million existing ordinary shares for £2.4M (US$3.1M) from Clara Resources to acquire an interest of up to 22.6% in London-listed First Tin.

First Tin is a junior mining company currently focused on developing and exploring tin assets in Germany and Australia. In Germany, the company is developing the historical Tellerhäuser Tin Mine in Saxony, along with two satellite deposits (Gottesberg and Auersberg) in an early exploration stage. The Tellerhäuser project is estimated to have a significant tin resource of 27Mt with a grade of 0.5% Sn for a total of 137kt of contained tin. The Gottesberg Deposit has a JORC 2012 mineral resource estimate of 6.8Mt with a grade of 0.49% Sn for a total of 33kt of contained tin. A mineral resource estimate is yet to be determined for the Auersberg Deposit. In Australia, First Tin is developing the Taronga tin project in New South Wales. A definitive feasibility study published in May showcased positive economic metrics for the project, with an estimated total resource of 133Mt with a grade of 0.1% Sn for a total of 138kt of contained tin. The project aims for an average annual production of 3.6ktpy of tin-in-concentrate, with the first concentrate expected in 2027.

In July 2024, Metals X agreed to buy Clara Resources’ entire stake in First Tin. Consequently, Metals X now holds 22.6% of the current issued ordinary share capital of First Tin and has two directors seated on First Tin’s board. Also in July, First Tin announced fundraising to raise gross proceeds of £2.1M (US$2.7M) by selling 53,000,000 new ordinary shares at 4p per share. Metals X committed to purchasing 11,500,000 new First Tin shares and, upon completion of the fundraising, which is subject to First Tin shareholder approval, will hold approximately 23% of the enlarged issued share capital of First Tin.

According to Project Blue, tin demand is expected to grow at a moderate rate of 2.4%py over the next decade. There is a strong possibility that demand will outstrip supply during this period. Against this backdrop, Metals X’s investment in First Tin is more than just financial. Metals X currently owns a 50% stake in the Renison Tin Operation in Tasmania and has gained valuable mining and beneficiation experience. This experience will benefit the development of First Tin’s Tellerhäuser and Taronga projects as the company aims for a start date in 2027. Furthermore, the new tin units will be necessary to meet the ever-growing demand.