Cornish Metals secures £56m to restart South Crofty tin mine

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Cornish Metals Inc. has announced a strategic £56 million fundraising for mining to advance the long-awaited restart of the South Crofty tin project in Cornwall. This major funding initiative, backed by the UK government’s National Wealth Fund Limited () and private investor Resources, will accelerate critical development work, including mine dewatering, shaft refurbishment, and early-stage project construction.

This Cornish Metals investment marks a pivotal moment for South Crofty, a historic mine with the potential to supply high-grade tin, a critical mineral essential for global electronics and technologies. With the UK striving to bolster domestic production of key raw materials, this project could play a crucial role in strengthening Britain’s mineral security while reviving Cornwall’s mining legacy.

Who Are the Key Investors in Cornish Metals’ Fundraising?

A major portion of the fundraising for mining comes from NWF, a UK government-backed entity under HM Treasury. NWF has committed to investing up to £28.75 million, acquiring 359.4 million new common shares at an issue price of 8 pence per share. The investment is subject to scale-back provisions but will not drop below a minimum commitment of £25 million.

Vision Blue Resources, which already holds a 25.95% stake in Cornish Metals, is also reinforcing its position by subscribing for additional shares. Its contribution, expected to reach up to £18.28 million, ensures the firm maintains its existing shareholding percentage. This Cornish Metals investment signals continued confidence in the project’s viability and its long-term economic value.

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Beyond these cornerstone investors, institutional and private stakeholders will also have the opportunity to participate. A conditional placing managed by Hannam & Partners and SP Angel Corporate Finance is set to raise £8.8 million, with an additional £5.9 million potentially available through a broker option. Retail investors will also have access to a £3 million share offering via the BookBuild platform, allowing broader market participation in the project’s future.

What Will the Funds Be Used for at South Crofty Tin Mine?

The Cornish Metals investment will be directed toward several key development phases at South Crofty tin mine, positioning it for a full-scale restart in the coming years. A major focus will be on mine dewatering, a crucial step in reviving underground mining operations. The water removal process is expected to be completed before additional infrastructure upgrades commence.

Another priority is the refurbishment of South Crofty’s shafts, which are essential for optimising underground access and ore transportation. Additionally, early-stage construction for the processing plant will begin, alongside procurement of long-lead equipment necessary for operational stability.

CEO Don Turvey emphasized that this fundraising for mining ensures Cornish Metals remains on track to restart production while maintaining momentum in securing project financing. “Tin is a critical mineral that underpins energy transition and modern electronics,” he noted. “This investment allows us to take critical steps toward ensuring South Crofty becomes a sustainable, long-term supplier of high-grade tin from the UK.”

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Why Is Tin Mining Crucial for the UK and Global Supply Chains?

As the global demand for critical minerals surges, tin has emerged as a vital resource for multiple industries. Used in semiconductor manufacturing, electric vehicle components, and renewable energy systems, tin plays a key role in the global shift toward cleaner technologies. The South Crofty tin mine presents an opportunity for the UK to reduce its dependence on foreign suppliers, supporting domestic production of this strategically important material.

NWF CEO John Flint underscored the significance of the investment, stating, “Critical minerals are not just vital for the UK’s net-zero transition, but they are also essential for economic growth. This is our second investment in Cornwall’s mineral sector, highlighting our commitment to securing supply chains and supporting regional economies.”

This fundraising for mining aligns with the UK government’s broader initiative to strengthen mineral independence, particularly as geopolitical risks continue to disrupt global supply networks. Reviving South Crofty could provide a reliable domestic source of tin, reducing import reliance and reinforcing the country’s position in the international minerals market.

What Are the Next Steps for Cornish Metals?

The first tranche of shares from the Cornish Metals investment is set for trading on on 6 February 2025, subject to regulatory approvals. The second tranche, which includes additional shares from Vision Blue Resources and NWF, will require shareholder approval at a special meeting scheduled for 18 March 2025.

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Cornish Metals anticipates making a final investment decision on South Crofty by Q1 2026, with project debt financing secured before that date. If all phases proceed as planned, South Crofty could begin production in the near future, marking a historic return for tin mining in Cornwall.

The potential impact of this project extends beyond financial gains—by restoring the mine, Cornish Metals could help revitalize the region’s mining industry, create skilled jobs, and support the UK’s ambitions for sustainable mineral sourcing.

With growing investor confidence and strong government backing, this fundraising for mining underscores South Crofty’s strategic importance in the evolving global minerals landscape. As the UK intensifies its focus on securing raw material independence, Cornish Metals’ investment could serve as a model for future domestic mining initiatives.


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