Cornish mining firm sell Canadian interests in £3.5m deal
Mining firm Cornish Metals has sold its interests in two Canadian projects for an estimated £3.5m.
The AIM listed business has been selling its overseas interests in order to concentrate on the South Crofty tin project in Cornwall.
The mineral exploration and development company has announced that it has entered into a binding agreement with Elemental Altus Royalties for the sale of the royalty interests that the company holds on the Mactung and Cantung tungsten projects located in Northern Canada.
Ken Armstrong, interim chief executive and director of Cornish Metals, stated: “The sale of the Mactung and Cantung royalties follows Cornish Metals’ recently announced sale of the Nickel King project and further demonstrates our priority and focus on advancing the Company’s wholly owned and fully permitted South Crofty tin project, in the UK, towards commencement of production in 2027.”
Under the terms of the agreement Elemental Altus will pay Cornish Metals a cash payment of $3m on the transaction close date.
And Elemental Altus will pay Cornish Metals $1.5m 12 months following the transaction close date.
The royalties were acquired by the company in March 2016 for $1,500,000.
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.
