Cornish Metals has secured conditional commitments for a €161 million equity fundraising to advance its South Crofty tin mine in Cornwall towards construction, targeting first production by mid-2028.
The company said investors had subscribed for 225 million new shares, with major commitments from the UK National Wealth Fund, Vision Blue Resources, Glencore and Leonidsport. Shareholder approval is scheduled for 9 November, with new shares expected to begin trading on 10 November.
Equity Raise Combines New Cash and Debt Conversion
The National Wealth Fund committed approximately €49.8 million, while Vision Blue Resources subscribed for €46.9 million. Glencore committed around €13.4 million, Leonidsport approximately €16 million, other institutional investors €24.4 million and the retail offering around €7.2 million.
The shares are priced at approximately €0.716 each, a 41.2% discount to the price before the special fundraising trading window. Following completion, the National Wealth Fund is expected to hold approximately 29.5% of Cornish Metals and Vision Blue around 28.6%, subject to subsequent share issuances. The headline fundraising includes approximately €65.7 million in existing loans and accrued interest expected to convert into equity. Consequently, the transaction represents around €95.5 million in additional cash, before expenses.
Cornish Metals also placed €185 million equivalent in senior secured Nordic bonds in May 2026, carrying a 13.5% annual coupon. The proceeds remain in escrow pending satisfaction of release conditions, including completion of the required equity raise by 21 November, unless bondholders approve an extension. The overall financing plan identifies approximately €361 million in gross sources and corresponding uses, including debt conversion. Around €221 million is allocated to project capital expenditure, while approximately €38 million is earmarked for bond interest during construction and early operations.
Glencore Secures Future Tin Concentrate Supply
Under an agreement announced on 20 October, Glencore will purchase 100% of South Crofty’s tin concentrate production for six years from the start of commercial operations.
The companies have also agreed preliminary terms for a potential working-capital facility of up to approximately €8.6 million equivalent, although this has not yet become a completed financing commitment.
South Crofty Targets 4,700 Tonnes of Annual Production
The historic underground mine near Camborne is being prepared for redevelopment through dewatering, underground rehabilitation, geological assessment, engineering and processing studies. A September 2025 preliminary economic assessment outlined a 14-year mine life, approximately 49,000 tonnes of tin contained in concentrate, and average annual production of around 4,700 tonnes during operating years two to six.
The study estimated pre-production capital expenditure at approximately €236 million, with a projected after-tax net present value of €215 million at a 6% discount rate and a 20% internal rate of return. These figures are modelled estimates based on the study’s assumptions.
The upgraded concentrator is expected to use pre-concentration and conventional processing technologies. Outstanding work includes further approvals, equipment procurement, underground rehabilitation and processing-plant installation. Previous capital estimates have increased due to scope changes, labour costs, extended dewatering, shaft refurbishment and construction inflation.
Construction Funding Remains Conditional
The National Wealth Fund, Vision Blue and company directors, representing approximately 58% of existing issued shares, have committed to support the equity resolutions at the November meeting.
Completion would help Cornish Metals meet the conditions for releasing the bond proceeds and move towards its mid-2028 first-production target. Construction costs, commissioning, operational performance and the cost of servicing secured debt remain key considerations as the project advances.
