Cornish Metals closes £8.2m financing, begins trading on AIM

South Crofty, about 390km drive west of London on the Celtic Sea Coast, was the last tin mine in Europe when it closed in 1998. (Image courtesy of Strongbow Exploration via Facebook)

Following the successful closing of an £8.2 million equity financing, Cornish Metals Inc. (TSXV: CUSN) officially began trading on London’s AIM market Tuesday morning under the ticker “CUSN”. Its shares will continue to be listed on the TSX Venture Exchange in Canada.

The company, which is looking to bring copper and tin mining back to Cornwall, UK, received conditional approval last week from the TSX-V for this financing. Its core projects are the United Downs underground copper-tin exploration project and the South Crofty tin project.

New and existing institutional investors participated in an oversubscribed £8 million placing of the company’s common shares during a two-week virtual roadshow. An additional investment of £206,000 was raised through an offer to high net worth investors.

Approximately 117.22 million common shares, each priced at 7 pence, were issued pursuant to the equity fundraising. Upon admission to the AIM, the company will have about 267.14 million shares issued and outstanding.

In conjunction with the fundraising, a total of C$7.17 million of loan notes held by Osisko Gold Royalties will be redeemed, and a significant proportion of the company’s security was released in exchange for two perpetual net smelter royalties granted to Osisko.

Proceeds raised by Cornish Metals will be used to fast-track a drilling exploration program at United Downs to define a mineral resource. Its longer-term plan is to bring the South Crofty mine back into production.

The company intends to produce conflict-free “clean tin” to provide security of supply for Europe and North America.

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