Cornish Metals has launched a proposed fundraising of about 135 million pounds before expenses at 60 pence a share to develop its wholly owned and permitted South Crofty tin project in Cornwall. The package combines an institutional placing run through an accelerated bookbuild, direct subscriptions and a retail offer through RetailBook. Glencore International has conditionally agreed to subscribe for 18,718,319 shares for about 11.2 million pounds, the National Wealth Fund for up to about 29.5 percent of the total raised, Vision Blue Resources for about its pro rata entitlement, and directors and other investors for about 1.0 million pounds in aggregate. No part of the fundraising is underwritten, and each element is conditional on the others and on shareholder approval at a general meeting.
Alongside the equity, South Crofty Limited has signed a six year offtake agreement with Glencore covering 100 percent of tin concentrates produced from planned production start in 2028, on a minimum aggregate delivery volume of 27,513 metric tonne units of contained tin. The two companies have also signed heads of terms for a possible revolving working capital facility of up to 10 million dollars.
The raise is the key that unlocks debt placed earlier this year. In May Cornish completed an oversubscribed placement of 210 million dollars of six year senior secured Nordic bonds at a 13.5 percent coupon, but the proceeds sit in escrow until the company completes an equity fundraising of at least 161 million dollars by November 21, 2026. At about 188 million dollars, the proposed raise would satisfy that condition if shareholders approve it. The company’s sources and uses total 302 million pounds, including 185 million pounds of capital expenditure for South Crofty and 55 million pounds to capitalise the Vision Blue and National Wealth Fund credit facilities. Cash at October 1 was 11.6 million pounds excluding the escrowed bond funds.
The price is the cost. At 60 pence, the issue is about 41 percent below the 102 pence at which the shares last traded before trading paused under a Capital Access Window, and the roughly 225 million new shares compare with 125.5 million shares in issue at the end of June. Chief executive Don Turvey said the expanded register and the oversubscribed debt demonstrate the strategic importance of South Crofty to the UK and the wider Western critical minerals supply chain. Dewatering has passed 400 metres below surface and refurbishment of the New Cook’s Kitchen shaft is under way, with first production targeted for mid 2028. South Crofty last produced in March 1998.