Fieldfisher has advised TSX-V-listed Cornish Metals Inc.
The transactio involved an oversubscribed £8.2 million equity fundraising from UK investors, a refinancing of a loan from Osisko Gold Royalties and its admission to trading on London’s AIM market, clearing the way for the company to develop copper and tin projects in Cornwall, southwest UK.
The £8.2 million of funds were raised from new and existing institutional and high net worth investors during an extremely busy two-week virtual roadshow, which demonstrated significant enthusiasm among British investors for an opportunity to support the return of strategic mineral production to the UK.
Cornish Metals’ core projects are the United Downs underground copper-tin exploration project and the South Crofty tin project, which are located in the west of Cornwall.
In conjunction with the fundraising, C$7.17 million of loan notes held by Canada’s Osisko Gold Royalties will be redeemed and a significant proportion of the group’s security released in exchange for two perpetual net smelter royalties (NSR) granted to Osisko for mineral products produced from South Crofty and United Downs.
The new funding raised by Cornish Metals will be used to fast-track a drilling exploration programme at United Downs to define a mineral resource. Its longer-term plan is to bring the South Crofty tin mine back into production.
The company intends to produce conflict-free “clean tin” to provide security of supply for Europe and North America. The project will also have a positive impact on the local Cornish environment through brownfield land redevelopment and water quality improvements.
Fieldfisher’s Head of Mining and Metals, Jonathan Brooks (Picture), led on the deal.
Involved fees earner: Jonathan Brooks – Fieldfisher;
Law Firms: Fieldfisher;
Clients: Cornish Metals Inc.;