Sir Mick Davis, a former Tory treasurer and mining veteran, is investing £25m in a historic Cornwall tin mine.
Vision Blue Resources, the investment fund he created and is now chief executive of, has taken a 25pc stake in AIM-listed Cornish Metals. This company plans to reopen the South Crofty Tin mine.
After a decline in tin prices, the mine was shut down in 1998. It had been in operation for approximately 400 years.
Vision Blue Resources’ investment is part of a £40m fundraise from Cornish Metals, which will pay for water pumping and feasibility studies.
Prices for tin have nearly doubled between 2021 and October at $40,000 per ton. Tin is in high demand for products such as cars and electrical connections.
Cornish Metals’ chief executive Richard Williams stated: “[This investment] really confirms that we have an asset in the UK in Cornwall. Tin is vital for electronic devices. Sir Mick is thrilled to have this endorsement of the company and the project.
Sir Mick founded Vision Blue Resources in December 2020 in order to invest in metals and minerals related to the shift to greener energy. The company has invested in three ventures so far: Next-Source Materials graphite developer, Ferro-Alloy Resources Group vanadium developer and Sinova Global quartz developer.
Tin is used in electronic connections, which makes it key to the transition away from fossil fuels.
Cornish Metals estimates that there are approximately 65,000 tons in the mine. However, more research will be done to determine how much can be extracted.
The permits are in place and the mine could be operational by 2026. This would create approximately 250 direct jobs.
Participating investors in the £40m fundraise are granted warrants that allow them to purchase additional shares within three years. This could potentially raise another £60m for the project. Williams stated that this would finance the equity portion of the project financing. However, it could also consider debt financing.
The South Crofty Project is part of a revival in mining in Cornwall.
