CORNISH TIN NEWS UPDATE 26 FEBRUARY 2024
Cornish Tin Limited (“Cornish Tin” or the “Company”) is pleased to provide an update on the progress of its mineral exploration activities in relation to its first flagship project, The Great Wheal Vor, Cornwall, UK.
Successful fundraise in 2023
The Company raised a total of £2,080,000 approx in 2023, through the combination of a private placing and a Crowdcube raise. This fundraising closed in Q4 of 2023. The placing was funded entirely by existing shareholders of the Company, and over 1,600 individuals invested in the Crowdcube raise. Both the placing and the Crowdcube raise were on the same pre-money valuation of the Company of £27 million, and for the issue of Ordinary Shares of £0.00001 each with one vote per share.
The purpose of the raise is to fund the Company’s Phase 2 exploration drilling program, which has now started, and for working capital.
To put this in context, all other fundraising by the Company has been as follows. The Company raised £1.9 million by a private placing in December 2021 at a pre-money valuation of the Company of £15 million, and then raised £900,000 through Crowdcube in April 2022 at a pre-money valuation of £21.9 million. This combined total of £2.8 million has been used to fund the Company’s Phase 1 exploration drilling program and working capital. In its successful Phase 1 drilling program (approx 6,500 metres of diamond drilling), the Company’s discoveries included:
· a new high-grade tin lode “Hichens Lode”,
· multiple new tin lodes with grades of up to 6.28% Sn,
· significant intercepts returned from a number of mineralised structures open in multiple directions,
· a potential new lithium field in the rare G5 granite in the Company’s exploration area, also associated with high tin values.
Phase 2 Drilling Program started on 15 February 2024
The Company was on 9 January 2024 granted by Cornwall Council as Mineral Planning Authority the necessary planning consent (General Permitted Development Order) for the Phase 2 drilling program. Drilling started on 15 February, with two drill rigs operating near Breage, Helston, Cornwall. As in Phase 1, the drilling contractor is Priority Drilling UK Limited.
The Phase 2 program has been designed to build on the success of the Company’s Phase 1 results, targeting high-grade tin and also beginning to measure the continuity and extent of the Company’s lithium discovery.
Crown Estate
As reported in the Financial Times and other media in October 2023, the Crown Estate has approved the grant to Cornish Tin of rights to prospect for and extract the “sovereign minerals” of gold and silver across a total of ~500 sq km of Cornwall, (including the Great Wheal Vor area) which comprises approx 14% of the land mass of Cornwall. Although the Company is primarily exploring for high grade tin and hardrock lithium, this grant consolidates its position in its chosen exploration areas.
Sally Norcross-Webb, CEO and Founder, commented:
“We are pleased with the recent fundraise of £2,080,000, which in a tough market is a very good result. The fact that the placing was funded by existing shareholders speaks volumes for their loyalty and belief in the Company’s prospects. We also deeply appreciate the investments of over 1,600 people, who chose to invest in the Company through Crowdcube, despite the cost-of-living crisis. As ever, we are grateful for the support of all our shareholders.
The Phase 2 exploration drilling program is now underway, and I believe this will be an exciting year for Cornish Tin. We remain primarily focused on pursuing high-grade tin and consider the market outlook for tin very strong. Nevertheless, our potential hardrock lithium asset could deliver significant value in the future, despite recent corrections in lithium prices.”
Further information about Cornish Tin
· Cornish Tin is a private company limited by shares registered in the UK under company number 10935627, incorporated in 2017. The Board comprises two directors, Sally Norcross-Webb (Founder and CEO) and Clive Newall (Chairman and co-founder).
· The Company’s first and flagship project is The Great Wheal Vor, a group of 26 past-producing tin and copper mines near Breage, Cornwall, described in 1929 by Hamilton Jenkin as “the richest in tin of all the Cornish mines, probably the richest tin mine which has ever been worked in the world”. Historic production grades averaged 3.5% Sn and peaked at over 5.5% Sn, with a cut-off grade of ~1.4% Sn. The mines closed in the 19th century, not through any lack of mineral resource, but due to a long-running mineral rights dispute, now resolved. Assuming a production grade of only 2% Sn, it would be in the top 3 tin mines by grade in the world, if being mined today.
· The reason why the mines remained closed since the 1870s is that no-one had succeeded in putting the necessary mineral rights package together to advance the Project. However Sally Norcross-Webb assembled the necessary mineral rights control over a five year period for the Company to advance the Project from 2022.
· The Company currently employs six geologists, including Ryan Hichens, Project Geologist, and has a number of research consultants. The Company’s coresheds and offices are located at the United Downs Industrial Estate, St Day, Cornwall.
· Cornish Tin’s overriding commitment is to the protection and enhancement of the environment, with achievements to date including: extensive ongoing tree-planting in the local area; Ecological Impact Assessments in 2021, 2022 and 2023; sponsorship of Kernow Conservation (re-introduction and protection of endangered species in Cornwall including Ospreys); water sampling programme and local pond reclamation; all drill sites fully remediated as required by surface owners; strong support from local residents, many of whom are now shareholders.
ON BEHALF OF THE BOARD OF DIRECTORS
Sally Norcross-Webb
Founder and CEO
Cornish Tin Limited
Cornish Tin Limited
sn@cornishtin.uk
Forward looking statements
This News Update contains certain “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”). Forward-looking statements include predictions, projections, outlook, guidance, estimates and forecasts and other statements regarding future plans, the realisation, cost, timing and extent of mineral resource or mineral reserve estimates, estimation of commodity prices, currency exchange rate fluctuations, estimated future exploration expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, requirements for additional capital, future or estimated mine life and other activities or achievements of Cornish Tin, including but not limited to: mineralisation in relation to Cornish Tin’s projects, Cornish Tin’s exploration drilling programs, strategic vision of Cornish Tin and the timing and results of its projects. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “forecast”, “expect”, “potential”, “project”, “target”, “schedule”, “budget” and “intend” and statements that an event or result “may”, “will”, “should”, “could”, “would” or “might” occur or be achieved and other similar expressions and includes the negatives thereof. All statements, other than statements of historical fact, included in this News Update are forward-looking statements that involve various risks and uncertainties and there can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
Forward-looking statements are subject to risks and uncertainties that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to receipt of regulatory approvals, risks related to general economic and market conditions; risks related to the availability of financing; the timing and content of current or future activities; actual results of exploration activities; possible variations in mineral resources or grades; projected dates to commence any activity; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; changes in national and local government regulation of mining operations, tax rules and regulations.
Cornish Tin’s forward-looking statements are based on the opinions and estimates of management and reflect their current expectations regarding future events and operating performance and speak only as of the date such statements are made. Although Cornish Tin has attempted to identify important factors that could cause actual actions, events or results to differ from those described in forward- looking statements, there may be other factors that cause such actions, events or results to differ materially from those anticipated. There can be no assurance that forward-looking statements will prove to be accurate and accordingly readers are cautioned not to place undue reliance on forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. Cornish Tin does not assume any obligation to update forward-looking statements if circumstances or management’s beliefs, expectations or opinions should change, other than as required by applicable law.
