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European law firm Fieldfisher has advised TSX-V and AIM-listed tin and copper developer Cornish Metals Inc. on a £40.5 million (c.C$66.8 million) equity raising.
The funding comprises a £25 million (c.C$41.2 million) strategic investment by Vision Blue Resources (VBR), a vehicle founded by Sir Mick Davis to invest in green energy-related resource companies, and £15.5 million (c.C$25.6 million) from a placing to UK institutional investors by joint brokers, SP Angel and Hannam & Partners, and subscriptions by Canadian and UK private investors.
The funding will be used to advance Cornish Metals' South Crofty tin project in Cornwall, including dewatering the mine, resource drilling and the completion of a feasibility study.
Since March 2021, LME cash tin prices have risen from approximately US$25,000 per tonne to more than US$40,000 per tonne, driven by tight supply and rising demand for the metal from the electronics sector, EVs, and renewable energy, especially solar cells.
Sir Mick Davis is a highly successful mining executive credited with building Xstrata plc into one of the largest mining companies in the world prior to its acquisition by Glencore plc. Before listing Xstrata on the LSE as CEO, he was CFO of Billiton plc and chairman of Billiton Coal, which he joined from Eskom. He set up VBR in December 2020 as an investment company to capitalise on and support the production of minerals needed for the clean energy transition.
VBR's investment in Cornish Metals' tin project adds to the company's portfolio of investments in companies producing minerals and metals including graphite, vanadium and quartz for various clean energy-related applications.
A Fieldfisher team led by Head of Mining Jonathan Brooks advised on the negotiation of VBR's investment agreement, the placing agreement and the arrangements relating to the subscriptions by the Canadian and UK private investors, working with Cornish Metals' Canadian lawyers, Lawson Lundell LLP and Cornish solicitors, Stephens Scown LLP.
Commenting on the deal, Jonathan Brooks, Head of Mining at Fieldfisher said:
"Having advised Cornish Metals on its AIM IPO last year, this is another important step forward for the company as it brings South Crofty closer to resuming operations.
"It is also a standout deal in the AIM-listed mining and metals segment at a time when confidence in the sector is buoyant, in the context of supply chain restraints and growing consumption in cleantech applications."
Richard Williams, CEO of Cornish Metals, said:
“This announcement marks a transformational moment for the company (…) in relation to the redevelopment of South Crofty.
"It is testament to the quality of both the project and the Company that an investor of the quality of Vision Blue Resources is proposing such a significant investment, and we are delighted to welcome them as a major strategic shareholder".
Sir Mick Davis, CEO of VBR, added:
“The investment in South Crofty has the potential to deliver significant tin production to meet an expected supply shortfall and enable the deployment of new, green technologies.
"Restarting production at an historic underground mine, within the existing footprint, and with the benefit of modern production techniques, provides an opportunity to minimise environmental and other impacts whilst creating significant benefits for local communities.”
Fieldfisher's Head of Mining Jonathan Brooks was supported by corporate associate Gurkirat Rehal, corporate solicitor Hannah Bignell, real estate director Gary Pickard, and legal professional Jade McCauley.