Cornish Metals, a mining company backed by the National Wealth Fund, is seeking to raise £135m through a share sale. The fundraising effort aims to finance the reopening of the historic South Crofty tin mine, which has been closed since March 1998.
Shares are being offered to major institutional and strategic investors, as well as UK retail investors, at 60p per share. This price represents a 41.2% discount to the group's share price on 13 October. Retail investors must purchase a minimum of £250 worth of shares.
The AIM-listed company has warned that the offer will be voided and cancelled if the £135m target is not met by 10 November. The total estimated capital expenditure required to prepare the mine for commercial production is approximately £185m.
The fundraise is expected to cover a significant portion of initial costs, including the construction of modern facilities, redevelopment of mine shafts, and installation of site infrastructure. The transaction is supported by shareholders including the National Wealth Fund, Vision Blue Resources, and FTSE 100 listed miner Glencore.
The National Wealth Fund, acting as the government's state investment arm, has already invested £63.6m into the group. Glencore has committed £11.2m, and Vision Blue has invested around £70m. Tin has been designated a critical mineral, essential for electronics, solar power, and AI hardware, with ministers identifying the mine as a "flagship project" to reduce reliance on foreign imports.
If production begins in mid-2028, the mine is expected to produce 4,700 tonnes annually over 14 years. Cornish Metals chief executive, Don Turvey, previously estimated the group could extract tin for £10,800 per tonne, compared to the current global price of £38,200 per tonne.