Cornish Metals Inc (AIM:CUSN, TSX-V:CUSN, OTC:SBWFF) has completed the sale of a 1% net smelter return royalty on the Sleitat tin-silver project, located in Alaska, USA, to Electric Royalties Ltd (TSX-V:ELEC, OTC:ELECF).
The consideration was US$100,000 cash and one million shares in Electric Royalties.
Separately, Cornish Metals has also received approval from the Venture Exchange to issue just over 20mln new shares, 52.5% of which will go to Galena Special Situations Ltd, with the remainder going to Tin Shield Productions Inc.
The shares represent consideration equivalent to an amount of US$4.75mln, a payment triggered by the recent fundraising for the dewatering of the company’s South Crofty tin mine.
As a result of this payment, the remaining deferred consideration payable to Galena and Tin Shield is US$5mln, payable upon a decision made by Cornish Metals to proceed with the development of a mine either at the South Crofty tin project or at the United Downs property.
Cornish Metals completed the acquisition of the South Crofty tin and United Downs copper-tin projects, plus additional mineral rights located in Cornwall in July 2016.
The additional mineral rights cover an area of approximately 15,000 hectares and are distributed throughout Cornwall. Some of these mineral rights cover old mines that were historically worked for copper, tin, zinc, and tungsten.
The South Crofty project covers the former producing South Crofty tin mine located beneath the towns of Pool and Camborne, Cornwall. The South Crofty mine closed in 1998 following over 400 years of continuous production.