Cornish mining company agrees £5m deal with Canadian firm

A South West mining company has struck a £5m deal to sell off a business in Canada.

Cornish Metals says it has agreed the deal as part of its strategy to concentrate its efforts on operations in South Crofty.

The AIM listed firm has entered into a binding letter of intent with Northera Resources for the sale of the company’s 100% interest in the Nickel King and Opescal Lake properties for a total consideration of eight million Canadian dollars.

Ken Armstrong, Interim chief executive and director of Cornish Metals, said: “The sale of Nickel King aligns with Cornish Metals’ objective to focus its efforts on advancing its 100% owned and fully permitted South Crofty tin project, in the UK, towards a construction decision.

“Cornish Metals will retain exposure to any future exploration success at Nickel King, as Northera works to recommence exploration activities at the Nickel King Property which comprises approximately 4,000 hectares in mining leases and mineral claims in Canada’s Northwest Territories.”

Northera will pay Cornish Metals a non-refundable cash payment of C$100,000 within five days of signing the agreement.

Within 95 days of signing the agreement, Cornish Metals will transfer to Northera the legal and beneficial title to the mining leases and mineral claims comprising the Nickel King Property, and Northera will pay the Company a non-refundable cash payment of C$900,000.

Upon completion of a go public transaction by Northera, resulting in a listing of securities on the TSX Venture Exchange Northera will issue to Cornish Metals common shares in the capital of Northera having an aggregate market value equal to C$7 million.

The Company’s wholly owned Nickel King Property is located in the Northwest Territories, 135 km northeast of Stony Rapids, Saskatchewan.

Cornish Metals is a dual-listed mineral exploration and development company focused on advancing the South Crofty high-grade, underground tin project through to a construction decision, as well as exploring its additional mineral rights, located in Cornwall.

South Crofty is a historical, high-grade, underground tin mine that started production in 1592 and continued operating until 1998 following over 400 years of continuous production;

The Project has planning permission for underground mining (valid to 2071), to construct new processing facilities and all necessary site infrastructure, and an Environmental Permit to dewater the mine;