Cornish Metals has secured conditional commitments for a €161 million equity fundraising, moving its South Crofty tin project in Cornwall closer to construction and supporting plans to restart UK tin production by mid-2028.
The fundraising attracted backing from the UK National Wealth Fund, Vision Blue Resources, Glencore and Leonidsport, alongside institutional and retail investors. The transaction remains subject to shareholder approval scheduled, while proceeds from a previously arranged bond issue are still subject to release conditions. The headline amount includes the conversion of existing debt into equity, meaning the transaction will generate less new cash than its gross value suggests.
Strategic investors support the fundraising
The National Wealth Fund committed approximately €49.8 million, while Vision Blue Resources subscribed for around €46.9 million. Glencore committed approximately €13.4 million, and Leonidsport around €16 million. Other institutional investors subscribed for approximately €24.4 million, while the retail offering attracted €7.2 million. The new shares are priced at approximately €0.716 each, a 41.2% discount to the share price immediately before the company’s special capital-raising trading window.
After completion, the National Wealth Fund is expected to hold around 29.5% of Cornish Metals, with Vision Blue holding approximately 28.6%, subject to subsequent share issuances. The transaction combines public investment, specialist mining capital and industrial participation, but existing shareholders will face dilution as the company raises construction funding.
Debt conversion reduces new cash proceeds
Approximately €65.7 million in existing loans and accrued interest owed to the National Wealth Fund and Vision Blue is expected to convert into equity. This will reduce debt but will not provide an equivalent amount of additional cash. After accounting for the conversion, the €161 million gross equity fundraising represents approximately €95.5 million in new cash, before expenses.
Cornish Metals also placed approximately €185 million equivalent in senior secured Nordic bonds in May 2026. The six-year bonds carry a 13.5% annual coupon, reflecting the risk of financing a mine before production begins.
The company’s overall financing plan identifies approximately €361 million in gross sources and corresponding uses, including debt conversion. Around €221 million is allocated to South Crofty capital expenditure, while additional funds cover financing costs, working capital, corporate expenses and approximately €38 million in bond interest during construction and early operations. The bond proceeds remain in escrow, with a key release condition requiring completion of a qualifying equity fundraising by November 21, unless bondholders approve an extension.
Glencore secures future tin concentrate supply
Commodity trader Glencore has agreed to purchase 100% of South Crofty’s tin concentrate production for six years from the start of commercial operations.
The offtake agreement provides a prospective buyer for the mine’s output and access to international trading and processing networks. However, it does not eliminate exposure to tin prices, production interruptions, concentrate quality or contractual delivery requirements. Cornish Metals and Glencore have also discussed a potential working-capital facility of up to approximately €8.6 million equivalent. The facility remains subject to further arrangements and is not a completed financing commitment.
South Crofty targets 4,700 tonnes of annual tin production
Located near Camborne and Pool in Cornwall, South Crofty is a historic underground mine being prepared for renewed production. Cornish Metals has undertaken dewatering, underground rehabilitation, geological assessment and engineering work.
An updated preliminary economic assessment published in September 2025 outlined a 14-year mine life and approximately 49,000 tonnes of contained tin in concentrate over the operating period. Average annual production is projected at around 4,700 tonnes during operating years two to six. The study estimated pre-production capital expenditure at approximately €236 million and projected an after-tax net present value of €215 million, using a 6% discount rate, with a 20% internal rate of return under its base-case assumptions. These are modelled projections, not guaranteed financial outcomes.
The project’s performance will depend on construction costs, tin prices, underground productivity, processing recovery and the ability to maintain consistent concentrate quality.
Construction costs and timing remain key risks
The fundraising improves South Crofty’s financial position, but the company must still complete outstanding approvals and manage equipment procurement, underground rehabilitation, plant installation and commissioning. Earlier revisions to capital estimates reflected changes in project scope, labour costs, dewatering, shaft refurbishment and construction inflation. Further delays or technical difficulties could increase expenditure.
The 13.5% bond coupon also raises the cost of schedule overruns, as interest obligations continue before commercial production generates operating cash flow.
South Crofty could diversify European tin supply, but producing concentrate in the UK does not guarantee that refining will also take place domestically. Glencore’s agreement provides access to international processing networks without ensuring a fully European downstream supply chain. The next milestone is the November 9 shareholder vote, followed by expected trading in the new shares on November 10. If the transaction is completed and the bond conditions are satisfied, Cornish Metals can focus on construction and its target of first tin production in mid-2028.
The €161 million fundraising commitments move South Crofty closer to construction, but successful delivery will depend on securing the financing, controlling costs and bringing the mine into reliable commercial production.
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