- Cornish Metals Inc NPV (DI)
- 15 May 2026 12:32:36
Source: Sharecast
The company said the facilities, agreed with the National Wealth Fund and Vision Blue Resources, followed its announcement on 7 May of the successful placement of $210m of Nordic bonds.
Proceeds from the new facilities will be used partly to credit the escrow account established in connection with the bonds, which must be funded as a condition of their issuance.
Cornish Metals said up to about £16m would be used for that purpose, with the remaining proceeds supporting underground mine development, shaft refurbishment, surface facilities and infrastructure, as well as general operating and corporate purposes.
The National Wealth Fund is providing a facility with a total principal of £35m, while Vision Blue is providing a facility of $22.75m.
Each facility comprises a committed first tranche and an uncommitted second tranche that can be requested by Cornish Metals if required and made available at the lenders’ discretion.
For the National Wealth Fund, the committed tranche is £21.1m and the uncommitted tranche is £13.9m.
For Vision Blue, the committed tranche is $13.7m and the uncommitted tranche is $9.05m.
The facilities have a six-month term and carry interest of 13% per annum, capitalised and compounded daily.
An arrangement fee of 1.65% is payable on the funding of each tranche.
The facilities are secured by fixed and floating charges over the assets of Cornish Metals and guarantors Cornish Metal Holdings and South Crofty, excluding mineral titles and UK assets already pledged as security.
Repayment is due six months from the date of the agreements, with the facilities also required to be repaid within 10 business days of a qualifying equity raise.
Chief executive Don Turvey said the funding would provide Cornish Metals with the “financial runway” to progress South Crofty through to final investment decision while continuing to advance and de risk the project.
“It also signals the National Wealth Fund’s and Vision Blue’s continued support for Cornish Metals and our goal to restart tin mining in Cornwall, providing a sustainable supply of this critical mineral to the West,” he said.
“As part of the project financing process, the Company has been engaging with investment parties, including strategic offtakers and institutional investors, interested in financing the development of South Crofty, and we are pleased with the level of interest we are receiving, further highlighting the significance of this project.”
Both the National Wealth Fund and Vision Blue are substantial shareholders in Cornish Metals, holding 28.45% and 29.08% of the company’s issued share capital, respectively.
As a result, each facility is deemed a related party transaction under AIM Rule 13.
Cornish Metals said its independent directors, after consulting nominated adviser SP Angel Corporate Finance, considered the terms of both facilities to be fair and reasonable insofar as shareholders were concerned.
South Crofty is a historic underground tin mine in Cornwall with existing infrastructure, including multiple shafts that could be used for future operations.
Cornish Metals said the project was permitted for underground mining until 2071, as well as for construction of a new processing facility and associated site infrastructure.
The company said South Crofty was expected to produce about 4,700 tonnes of tin-in-concentrate annually in the first five years of full production, at lowest-quartile all-in sustaining costs over an initial 14-year mine life.
Cornish Metals said the project would be a low-environmental-impact underground mine with no surface tailings and could become the first primary producer of tin in Europe or North America.
Tin is classed as a critical mineral by the UK, US and Canadian governments, with the company noting that about two-thirds of global mined supply currently comes from China, Myanmar and Indonesia.
At 1213 BST, shares in Cornish Metals were down 1.26% at 97.75p.
Reporting by Josh White for Sharecast.com.
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