Cornish Metals looks to replace short-term funding facility
The new chief executive of Cornish Metals is working to secure funding for its South Crofty scheme, with additional finance needed to be put in place by the end of March.
South African mining executive Don Turvey joined Cornish Metals as chief executive on October 9. Cornish Metals has owned the South Crofty tin project since 2016 and wants to restart production in three years’ time.
A $9.1m (£7.0m) credit facility was arranged with shareholder Vision Blue Resources and revealed the following week. Vision Blue hold 26% of the company.
However it is in place for just six months and matures on March 31. The mining company had £3.3m cash in the bank at the end of September, new figures published today have shown.
Cornish Metals has generated a £480,000 profit in the first nine months of the year, boosted by the sale of the Mactung and Cantung royalties, which created a gain of $4.7m (£3.7m), although $1.5m (£1.2m) is deferred until August.
Its operating expenses have doubled to £6.5m which has been caused by the termination settlement paid to the former chief executive Richard Williams, as well as “higher travel and marketing expenditure arising from increased investor and media engagement”.
In an update to shareholders, new CEO Don Turvey said: “I am pleased to have joined Cornish Metals and will be working closely with the management and project teams to take South Crofty to production, to bring responsible tin mining back to Cornwall and to generate value by unlocking the project’s potential as a long-term supplier of tin needed for electrical applications in the UK and Europe.
“Activity levels on-site are high as the NCK shaft refurbishment and mine dewatering progress, further derisking the project. We have also commenced the project finance process to secure the optimal funding solution for the construction of South Crofty.”
