UK tin project owner, Cornish Metals, makes significant steps with finance to maintain progress

Cornish Metals owns 100% of the South Crofty tin project in Cornwall, UK. The company is redeveloping the historical tin mine and has made good progress over the last twelve months. In early November 2023, it started a dewatering programme, and this year, it released a preliminary economic assessment and began refurbishing the New Cook’s Kitchen shaft.  

The hard work now begins to take the project to the next stage with a firm financial footing. With this in mind, Cornish Metals has issued two financial updates. First, on 9 October, the company announced the appointment of Endeavour Financial as its financial adviser to secure project financing for the construction of South Crofty. Second, and significantly, on 16 October, Cornish Metals announced that it had entered into a non-dilutive £7M (US$9M) credit facility agreement with substantial shareholder Vision Blue Resources. According to the terms of the agreement, Cornish Metals is expected to repay the loan at an interest rate of 15% per annum. The loan is intended to cover Cornish Metals’ general operating and corporate expenses.  

The recent credit facility represents a significant milestone for Cornish Metals as the company advances towards the delivery of a feasibility study for the South Crofty tin project, which has a targeted start-up date of 2027.Furthermore, this marks Vision Blue Resources’ second investment in Cornish Metals, following a £25M (US$32M) strategic investment in 2022, which was allocated towards the dewatering programme, upcoming feasibility study, and other project advancements.  

The tin industry is currently facing a shortage of raw materials due to the ongoing mining suspension in Myanmar’s Wa State, which has now lasted for fourteen months. This has led to the depletion of surface stockpiles in the region and a lack of feedstock for Chinese refineries in Yunnan. Consequently, Project Blue forecasts a supply deficit for 2024. Europe currently has limited concentrate production, and the re-entry of South Crofty into the supply chain could provide some welcome relief to the global market in the future to offset the uncertainty of supply from Myanmar.