Cornish Metals Inc (AIM:CUSN, TSX-V:CUSN, OTC:SBWFF) reported results for the quarter to end April, but the figures are almost irrelevant after a game-changing £40.5mln fundraising completed in May.
The AIM-listed company is using proceeds from the fundraise, which included a £25mln strategic investment by Sir Mick Davis' Vision Blue Resources, to help restart mining at the South Crofty tin project in Cornwall.
“As soon as the funds were received at the end of May, we wasted no time in starting to place orders for the new water treatment plant,” said chief executive Richard Williams.
It plans to construct the water treatment plant in the first half of 2023 and complete the dewatering of the mine within 18 months of its construction.
“The first recruits to our newly formed projects team will be joining us in the coming weeks and further appointments will be made to our mining and geological teams to enhance their capacities," said Williams.
"The next few months will be hard but rewarding work as we build the required framework for strong and capable project execution."
The company noted that tin prices in the medium to long term remain favourable.
“Demand is expected to increase further as electrification gathers pace, with supply constraints showing no sign of abating," said Williams.
Cornish Metals said its losses narrowed to C$979,427 in the three months to end April from C$1.3mln in the year-earlier period when operating expenses were higher due to the group’s listing on AIM and preparation work for the fundraising. It currently has no revenue.
Proceeds from the fundraising are being used to advance the South Crofty tin project to a potential construction decision within 30 months from the offering’s closure in May.
It plans to start an underground drilling programme in July to delineate a JORC-compliant measured and indicated mineral resource and increase the indicated and inferred level resource once access to the underground workings is obtained.