Cornish Metals Inc (AIM:CUSN, TSX-V:CUSN, OTC:SBWFF) has closed its previously announced £40.5mln fundraising.
"The completion of this financing allows Cornish Metals to push ahead with the dewatering of the mine and delivery of a feasibility study in order to make a production decision for the South Crofty tin project,” said Cornish Metals chief executive Richard Williams.
Each unit issued under the offering was priced at 18p, with each unit comprising one common share of the company and one warrant to purchase one additional share exercisable at a price of 27p for a period of 36 months.
On 19 May Cornish Metals received the necessary approvals from shareholders at a special meeting and from the Venture Exchange to proceed to close the offering.
Vision Blue, the investment vehicle of mining veteran Mick Davis, subscribed for just under 139mln units for proceeds of £25mln.
The money raised will be used to complete a dewatering programme and feasibility study at South Crofty, to evaluate downstream beneficiation opportunities, and potential on-site early works in advance of a potential construction decision.
Mine dewatering is expected to cost just over £16mln.