Cornish Metals Inc. (LON:CUSN, TSX-V:CUSN) said it had reached an agreement to restructure the deferred payments to be made to the sellers of the South Crofty tin project and associated mineral rights.
The agreement was reached with Galena Special Situations Ltd (formerly Galena Special Situations Master Fund Ltd) and Tin Shield Production Inc, a private company that had an option with Galena to acquire the tin project.
Cornish Metals (then Strongbow Exploration (UK) Ltd) acquired the South Crofty tin project and associated mineral rights in Cornwall, UK in 2016.
Under the restructuring announced today, the fixed and variable payments under the original share purchase agreement have been replaced with fixed payments linked to pre-agreed project-related milestones.
"The restructured payment schedule provides clarity and certainty to the market about what is required to make our Cornish projects a success,” said Richard Williams, chief executive of Cornish Metals. “We would like to thank our partners for working with us to achieve this outcome, which is positive for all concerned.”
"With growing UK interest in responsible domestic sourcing of materials and commodities essential to meet net-zero objectives, and on the back of Cornwall's successful G7 summit, we see this agreement as the opportunity to accelerate the work we are doing to revive the tin and copper industry in the UK," he said.
The new fixed payments comprise of 7.0mln shares in Cornish Metals, subject to shareholder approval; US$4.75mln in shares to be paid upon closing of either the financing for the dewatering of the mine at the South Crofty tin project, and or any interim financings; and US$5.0mln in shares upon closing of the development and/or construction financing of a mine either at the South Crofty tin project or at the United Downs property.