Cornish Metals continues to assess financing options to progress South Crofty tin project

Cornish Metals Inc. (LON:CUSN, TSX-V:CUSN) said it continues to assess various financing options to progress its South Crofty tin project, its key asset.

In the longer term, the Canadian exploration and development company intends to develop the project as and when economic conditions and cashflows are supportive.

The South Crofty project includes 26 former producing mines. Earlier this month, the company announced an increase in resource estimates at the iconic South Crofty tin mine, which was closed in 1998 following more than 400 years of almost continuous production.

“South Crofty could potentially play a pivotal role in securing a domestic and sustainable source of battery metals as the UK transitions to a low carbon economy,” said chief executive Richard Williams as the company released its quarterly financial results.

In the three months to end April 2021, the company’s losses widened to C$1.3mln (£0.8mln), from C$0.4mln in the year-earlier quarter, as operating expenses more than doubled. A large jump in professional fees for the explorer and developer, which in February listed on AIM and raised £8.2mln, accounted for much of the increase in operating expenses.

Cornish Metals, which has no revenue, ended the quarter with C$11.5mln in cash.

“I am delighted with what the company has achieved in the last few months – a highly successful listing on AIM which surpassed our expectations, the conversion of the Osisko loan note into two royalties which endorsed the quality of the company’s projects in Cornwall, a substantial increase in mineral resource for South Crofty and the commencement of the exploration programme at United Downs.,” said CEO Williams.

The proceeds from the AIM listing will be used to conduct a drilling program at the United Downs exploration project, to conduct initial field work on other high priority exploration targets within transport distance of South Crofty, and for general working capital purposes. 

Subject to drilling success, Cornish Metals said it expects the proceeds from the AIM listing will enable the company to be being fully funded to complete a maiden JORC resource at the United Downs exploration project.

Story by ProactiveInvestors