Cornish Metals is launching a £135m share offer to fund the reopening of the historic South Crofty tin mine, with the aim of reducing Britain's dependence on overseas imports. The AIM-listed company is offering shares to major institutional and strategic investors, as well as UK retail investors, to reach its fundraising target.
Share offer details and pricing
Retail investors can buy shares at 60p each, a 41.2% discount to the company's share price on 13 October. Institutional investors will get the same price, with a minimum purchase of £250. The offer will be scrapped entirely if the £135m target is not met before the sale closes on November 10.
The Canadian-owned business previously issued £160m in senior Nordic bonds but cannot draw down those funds until it secures at least £123m in fresh equity. Successfully completing the offer would satisfy this condition. The estimated capital expenditure to bring the mine to commercial production is approximately £185m.
Project backing and funding
The fundraise is expected to cover most upfront costs, including constructing modern facilities, redeveloping mine shafts, and installing site infrastructure. Key shareholders backing the deal include the National Wealth Fund, Vision Blue Resources, and Glencore.
The National Wealth Fund, the government's state investment vehicle supporting net-zero initiatives and domestic supply chain resilience, has already injected £63.6m into the project. Glencore has committed £11.2m, and Vision Blue has invested approximately £70m.
Strategic importance and future output
South Crofty tin mine has been dormant since March 1998, submerged underwater for nearly three decades. Tin is designated a critical mineral, vital for electronics, solar power, and AI hardware, with ministers identifying the mine as a "flagship project" crucial to ending reliance on foreign imports.
Chief executive Don Turvey has estimated the group could extract the metal for £10,800 per tonne, against the current global market price of £38,200 per tonne. If production begins in mid-2028, the mine is projected to yield 4,700 tonnes annually over a 14-year operational lifespan. The National Wealth Fund has indicated the venture would generate over 300 mining and engineering jobs.
