Cornish Metals Inc. (
TSX-V/AIM:
CUSN) (“Cornish Metals” or the “Company”), a mineral
exploration and development company focused on the South Crofty tin
project in Cornwall, United Kingdom, reports that, further to the
Company’s news release dated November 3, 2021, it has received
TSX-V approval for the issuance of 20,298,333 common shares
(“Milestone 1 Shares” or “Shares”) of the Company to Galena Special
Situations Ltd (“Galena”) and Tin Shield Productions Inc (“Tin
Shield”). This payment was triggered by the Company raising funding
for the dewatering of South Crofty mine (see news release dated May
23, 2022).
The Milestone 1 Shares represent consideration
equivalent to an amount of US$4,750,000 (C$6,089,500 at a USD / C$
exchange rate of 1.282) at a deemed price of C$0.30 per Share. The
Shares are divided on a ratio of 52.5% to Galena (10,656,625 common
shares) and 47.5% to Tin Shield (9,641,708 common shares) and are
subject to a four month plus one day hold period from the date of
issuance, in accordance with applicable Canadian securities
legislation.
As a result of this payment, the remaining
deferred consideration payable to Galena / Tin Shield is
US$5,000,000 in common shares, payable upon a decision made by
Cornish Metals to proceed with the development and/or construction
of a mine either at the South Crofty tin project or at the United
Downs property.
The Shares issued to Galena and Tin Shield will
rank pari passu with the existing common shares of the Company and
application was made on May 26, 2022 for the Shares to be admitted
to trading on AIM ("Admission"). It is expected
that Admission will become effective and dealings in the Shares
will commence at 8:00 a.m. (London Time) today. The Shares will
also trade on the TSX-V.
Following Admission and taking account of the
100,000 shares being admitted to trading on AIM on June 1, 2022 in
respect of warrant exercises (refer release dated May 26, 2022),
Cornish Metals’ Issued and Outstanding share capital will consist
of 531,248,490 shares. The Company does not hold any shares in
treasury. Shareholders may use this figure as the denominator for
the calculations by which they will determine if they are required
to notify their interest in, or a change to their interest in, the
Company.
Market Abuse Regulation
disclosure
The information contained within this
announcement is deemed by the Company to constitute inside
information pursuant to Article 7 of EU Regulation 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 as amended.
ABOUT CORNISH METALS
Cornish Metals completed the acquisition of the
South Crofty tin and United Downs copper / tin projects, plus
additional mineral rights located in Cornwall, UK, in July 2016
(see Company news release dated July 12, 2016). The additional
mineral rights cover an area of approximately 15,000 hectares and
are distributed throughout Cornwall. Some of these mineral rights
cover old mines that were historically worked for copper, tin,
zinc, and tungsten.
The South Crofty project covers the former
producing South Crofty tin mine located beneath the towns of Pool
and Camborne, Cornwall. The South Crofty mine closed in 1998
following over 400 years of continuous production. The Company has
undertaken extensive pilot-scale water treatment trials and
successfully applied for and received the necessary environmental
permits to abstract, treat and discharge mine water in order to
dewater the mine. Planning permissions for the operation of the
mine and re-development of the surface facilities have been secured
and construction of the water treatment plant foundations
commenced. The dewatering pumps, variable speed drives and new
high-voltage power supply have been delivered to site.
For an updated Mineral Resource Estimate in
respect of the South Crofty Mine, please see the Company’s
technical report entitled “South Crofty Tin Project Mineral
Resource Update” dated effective June 7, 2021, a summary of certain
portions of which is set out below:
South Crofty Summary Mineral Resource
Estimate |
Area |
Classification |
Mass (‘000 tonnes) |
Grade |
Contained Tin / Tin Equivalent (‘000 tonnes) |
Lower Mine |
Indicated |
2,084 |
1.59% Sn |
33 |
Inferred |
1,937 |
1.67% Sn |
32 |
|
Upper Mine |
Indicated |
277 |
1.01% SnEq |
3 |
Inferred |
493 |
0.93% SnEq |
5 |
All technical information contained within this
news release has been reviewed and approved for disclosure by Owen
Mihalop, (MCSM, BSc (Hons), MSc, FGS, MIMMM, CEng), the Chief
Operating Officer for the Company, and a “qualified person” as
defined in NI 43-101.
ON BEHALF OF THE BOARD OF
DIRECTORS
“Richard D. Williams”Richard D. Williams,
P.Geo
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Caution regarding forward looking
statements
This news release contains "forward-looking
statements" including, but not limited to, statements in connection
with the remaining deferred consideration payable to the Sellers
pursuant to a certain share purchase agreement dated March 16,
2016, as amended. These forward-looking statements are statements
regarding the Company's intentions, beliefs or current expectations
concerning, among other things, the Company's projections, outlook,
forecast, estimates, plans, potential results of operations or
upcoming work programs, financial condition, prospects, growth,
strategies and the industry in which the Company operates.
Forward-looking statements, while based on
management's best estimates and assumptions at the time such
statements are made, 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, risk of non-compliance with planning and environmental
permissions / licences, risks related to general economic and
market conditions; risks related to the COVID-19 global pandemic
and any variants of COVID-19 which may arise; risks related to the
availability of financing; the timing and content of upcoming work
programs; actual results of proposed exploration activities;
possible variations in mineral resources or grade; risks associated
with the unplanned departure of key personnel, environmental risks,
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. Although Cornish Metals has
attempted to identify important factors that could cause actual
results to differ materially from those contained in
forward-looking statements, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements. Cornish Metals
undertakes no obligation or responsibility to update
forward-looking statements, except as required by law.
For additional information please contact:
In North America:
Irene Dorsman at (604) 200 6664 or by e-mail at irene@cornishmetals.com
In UK:
SP Angel Corporate Finance LLP
(Nominated Adviser & Joint Broker)
Tel:+44 203 470 0470
Richard Morrison
Charlie Bouverat
Grant Barker
Hannam & Partners
(Joint Broker)
Tel: +44 207 907 8500
Matthew Hasson
Andrew Chubb
Ernest Bell
BlytheRay
(Financial PR/IR-London)
Tel:+44 207 138 3204
Tim Blythe
tim.blythe@blytheray.com
Megan Ray
megan.ray@blytheray.com
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