Cornish Metals secures funding for South Crofty project

Published 26/03/2025, 21:18
Cornish Metals secures funding for South Crofty project

VANCOUVER - Cornish Metals Inc. (AIM/TSX-V: CUSN), a mineral exploration and development company with a market capitalization of $70.3 million, has completed the second and final tranche of its fundraising initiative, securing approximately £46.7 million (C$83.4 million). The company’s shares have shown strong momentum, posting a 27.5% gain over the past six months according to InvestingPro data. The proceeds are earmarked for the advancement of the company’s South Crofty tin project in Cornwall, United Kingdom, including shaft refurbishment, de-watering, and early project works. With InvestingPro analysis indicating rapid cash utilization and a current ratio of 0.92, this funding comes at a crucial time for project development. InvestingPro subscribers have access to 12 additional key insights about the company’s financial position.

The fundraising, which was first announced on January 28, 2025, received the necessary shareholder approvals on March 18, 2025, and was subsequently greenlit by the TSX Venture Exchange. The final tranche saw the admission of 583,325,689 new shares, with the company now boasting a total of 1,252,414,079 common shares and equivalent voting rights.

Key investors include Vision Blue Resources Limited and the National Wealth Fund Limited, now holding 29.14% and 28.50% of the total voting rights, respectively. The company has stated that the new shares will be fully paid and rank pari passu with existing common shares.

In addition to the financial developments, Cornish Metals has announced the appointment of Mr. James Whiteside as a Non-Executive Director, effective immediately. Mr. Whiteside represents the National Wealth Fund and brings expertise in critical minerals investment.

The shares issued as part of the fundraising are subject to a four-month hold period in Canada, expiring on July 25, 2025. The company also disclosed that commissions totaling approximately £195,820 (C$349,990) were payable to the placing agents involved in the transaction.

This announcement is based on a press release statement and provides information about Cornish Metals Inc.’s recent fundraising completion and board appointment. While the company maintains a moderate debt level with a debt-to-equity ratio of 0.14, analysts tracked by InvestingPro project continued challenges ahead, with earnings per share forecast at -$0.01 for fiscal year 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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