Cornish Metals PLC (AIM: TIN) has launched a proposed £135 million fundraising to accelerate development of its South Crofty tin mine in Cornwall, securing backing from commodities giant Glencore and a six-year agreement covering the mine’s future tin production.
The fundraising, priced at 60 pence per share, includes an investment of approximately £11.2 million from Glencore, alongside participation from existing shareholders National Wealth Fund and Vision Blue Resources.
The Louis-Dreyfus family’s investment vehicle, Leonidsport, has also indicated its intention to invest £13.35 million, strengthening institutional support for the project.
Alongside its investment, Glencore has agreed to purchase 100% of South Crofty’s tin concentrate production for six years from the commencement of commercial operations.
The offtake agreement covers a minimum aggregate delivery volume of 27,513 metric tonnes of contained tin, providing Cornish Metals with a long-term commercial arrangement for its future production.
The proposed equity raise represents a critical step towards unlocking US$210 million in previously secured bond financing, which is currently being held in escrow.
Cornish Metals must raise at least US$161 million in equity by 21 November 2026 to satisfy a key condition for accessing the debt funding.
Together with existing cash resources, the financing forms part of a broader £302 million funding plan, including approximately £185 million allocated to the development of South Crofty.
The company is targeting first tin production by mid-2028, positioning the historic Cornish mine as a potential new source of domestically produced tin for the UK and international markets.
Tin is widely used in electronics, soldering and industrial manufacturing, making it an important material for semiconductor production and modern technology supply chains.
The proposed reopening of South Crofty could therefore contribute to efforts to diversify critical mineral supplies and reduce dependence on established overseas producers.
Chief Executive Don Turvey said the fundraising would enable Cornish Metals to accelerate development activities and secure remaining long-lead equipment required for the project.
He highlighted the participation of major institutional investors and Glencore’s commercial commitment as evidence of growing support for South Crofty and its potential role within Western critical mineral supply chains.
Turvey also noted that substantial progress had already been made both underground and at surface, with the additional capital intended to maintain momentum towards commercial production.
For investors, the proposed £135 million fundraising and six-year Glencore offtake agreement represent significant commercial and financing milestones, potentially reducing uncertainty over future sales and providing access to the debt funding needed to advance construction.
However, the fundraising remains proposed, and access to the US$210 million bond financing is conditional on meeting the required equity threshold by the November deadline.
The issue of new shares will also dilute existing shareholders who do not participate in the fundraising.
Attention will now turn to completion of the equity raise, release of the bond financing and progress on mine development, as Cornish Metals works towards bringing South Crofty into production in mid-2028.
