"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," Cornish Metals CEO Richard Williams said.
Each unit issued under the offering was priced at 18pence per unit with each unit, comprising one common share and one warrant to purchase one additional common share exercisable at a price of 27p for a period of 36 months.
The past-producing South Crofty mine closed in 1998 following over 400 years of continuous production which totaled over 450,000 tonnes of tine from the Central Mining District, Cornwall says.
The use of the proceeds from the offering are intended to be used in the manner below over a 30-month programme covering mine dewatering and resource drilling through to the completion of a feasibility study:
- Mine dewatering: GBP16.1 million
- Underground access/ resource drilling: GBP8.5 million
- Surface drilling to expedite feasibility study: GBP4.5 million
- Feasibility study: GBP1.2 million
- South Crofty holding costs: GBP1.7 million
- Corporate and general working capital: GBP8.5 million
If Vision Blue exercises its warrants in full, it will own about 42.75% of Cornish Metals, the company noted.
"We welcome Vision Blue Resources as a major shareholder and partner in this venture," Williams said.
Cornish Metals' share price was quoted as C$0.34 (US$0.26) on May 24, having risen 19% day on day. The company has a market capitalization of C$97.2 million.
