Cornish Metals Inc (AIM:CUSN, TSX-V:CUSN, OTC:SBWFF) has received the backing of the British government’s new investment vehicle, the National Wealth Fund Limited (NWF), which is taking a £28.75 million stake in the junior miner.
It comes as part of a larger share sale in the City, with the total proceeds expected to allow Cornish Metals to continue the dewatering and redevelopment of the South Crofty high-grade tin mine near the villages of Camborne and Red Ruth.
At least £56 million is expected to be raised for the AIM-quoted company, with new shares being priced at 8p each.
NWF, rebranded in 2024 by Chancellor Rachel Reeves, is one of the strategic investors in the miner’s capital raise, alongside existing major shareholder Vision Blue Resources Limited which is committing £18.28 million to retain its 25.95% stake.
A share placing to be run by brokers Hannam & Partners, SP Angel and Canaccord Genuity is expected to raise around £8 million (with a ‘broker option’ to take up a further £5.9 million), while a separate retail investor offer could raise another £3 million.
Directors in Cornish Metals are due to invest around £130,000 in a direct share subscription.
"We are very pleased to welcome NWF as a major shareholder in Cornish Metals and to lead this fundraise alongside Vision Blue, demonstrating support for the company and our plans to bring tin mining back to Cornwall,” Cornish Metals chief executive Don Turvey said in a statement.
“Tin is a critical mineral that is essential for the energy transition and anything electronic.
“South Crofty is a strategic asset with the ability to responsibly provide a secure, high-grade long-term supply of tin, reviving Cornwall's rich mining history and contributing to the local economy and the UK's transition to net zero.”
Turvey added: “The Cornish Metals team has achieved many important milestones over the last couple of years as we rapidly advance South Crofty towards a restart of production.
“This financing will enable the company to maintain this strong momentum and further unlock the project's potential by delivering crucial milestones expected in the coming year.”
NWF chief executive John Flint added: “Critical minerals are not only an important driver of the UK's transition to net zero, but also of the UK's growth mission, providing opportunities to anchor important supply chains in the UK.
“This is our second investment in critical minerals in Cornwall, and indicative of our ability to mobilise private investment into local economies, creating skilled and long-term employment."
The NWF is an expansion and rebranding of the UK Infrastructure Bank, which was created by the previous Conservative government in June 2021.