VANCOUVER, British Columbia, May 15, 2025 (GLOBE NEWSWIRE) — Cornish Metals Inc. (TSX-V/AIM: CUSN) (“Cornish Metals” or the “Company”), a mineral exploration and development company focused on advancing its 100% owned and permitted South Crofty tin project in Cornwall, United Kingdom, is pleased to announce that it has released its unaudited financial statements and management, discussion and analysis (“MD&A”) for the three months ended March 31, 2025. The reports are available under the Company’s profile on SEDAR+ (www.sedarplus.ca) and on the Company’s website (www.cornishmetals.com).
Highlights for the three months ended March 31, 2025 and for the period ending May 14, 2025
(All figures expressed in Canadian dollars unless otherwise stated)
- Strategic investment and fundraise (the “Fundraise”) (news releases dated January 28-31, 2025):
- The Fundraise totalling £57.4 million announced on January 28-31, 2025 was anchored by the National Wealth Fund Limited (“NWF”) and Vision Blue Resources Limited (“Vision Blue”), investing £28.6 million and £18.1 million, respectively, with a further £10.7 million from existing shareholders and new investors, including £1.4 million from a retail offer;
- The Fundraise is expected to provide financial runway through to the end of Q1 2026 and will enable the Company to further de-risk South Crofty and advance it towards a formal final investment decision;
- Senior management appointments (news release dated April 27, 2025):
- Strengthening of the project and operations teams at South Crofty with the appointments of Dave Howe as General Manager and Guillermo Alcaraz as Project Director;
- Mr. Howe has 35 years of open pit and hard rock underground mining (including narrow vein) operational and exploration experience, of which 24 years were in executive and senior management roles;
- Mr. Alcazar is a project executive with over two decades of global experience leading and overseeing a multimillion-dollar complex portfolio of mining, heavy industrial and infrastructure projects across diverse development stages;
- Purchase of 4.5 acres of land from Cornwall Council (news release dated April 1, 2025):
- The purchased land is immediately adjacent to existing surface land owned by Cornish Metals and provides direct access to the main road at Dudnance Lane from where a new entrance to the mine site is planned and where a new mine office, stores and workshop will be located.
- Mine dewatering and refurbishment of New Cook’s Kitchen Shaft:
- Refurbishment of New Cook’s Kitchen shaft (“NCK”) is progressing and has reached approximately 290 metres below surface. The water level in NCK shaft is currently at approximately 300 metres below surface;
- Progress during the period under review has been slower than in prior periods reflecting the staged maintenance of the submersible pumps in preparation for the next phase of dewatering. Dewatering is currently advancing at a rate of over 15,000 m3 per day and this will increase to approximately 25,000 m3 per day once maintenance is completed.
Don Turvey, CEO and Director of Cornish Metals, stated: “We started the year on a strong note successfully completing the £57.4 million fundraise that was supported by existing and new shareholders, including Vision Blue and the UK’s National Wealth Fund. This funding will enable the Company to maintain its strong momentum and further unlock South Crofty’s potential by delivering important milestones expected in the coming year including advancing mine dewatering and shaft refurbishment, placing orders for long-lead items, the start of early project works and concluding the project finance process. We have also strengthened our project and operations teams at South Crofty with senior appointments to the roles of Project Director and General Manager who will be key to leading South Crofty through successful construction and to full production.”
Financial highlights for the three months ended March 31, 2025 and March 31, 2024
| Three months ended | ||||
| March 31, 2025 | March 31, 2024 | |||
| (Expressed in Canadian dollars) | ||||
| Total operating expenses | 3,189,723 | 2,759,198 | ||
| Loss for the period | 3,043,606 | 2,561,669 | ||
| Net cash used in operating activities | (2,190,616) | (1,148,564) | ||
| Net cash used in investing activities | (6,602,900) | (7,895,388) | ||
| Net cash provided by (used in) financing activities | 87,513,355 | (85,646) | ||
| Cash at end of the period | 88,954,141 | 17,015,749 | ||
- Operating expenses have risen reflecting increased professional fees associated with more corporate activity as well as an increase in corporate remuneration due to bonuses following completion of the Fundraise;
- Project related expenditure of $5.3 million relating to the advancement of South Crofty, primarily relating to NCK shaft re-access & refurbishment, preparation for the refurbishment of the pump station at 360 metres depth and ongoing project engineering studies;
- Dewatering costs of $1.5 million for power, reagents, sludge disposal and maintenance of the water treatment plant (“WTP”);
- Receipt of $87.5 million in net proceeds from the Fundraise after repayment of the debt facility with Vision Blue which was settled through a set-off with the Fundraise; and
- Cash increased by $78.7 million to $89.0 million at the period end due to the proceeds received from the Fundraise offset by ongoing development activities at South Crofty.
Outlook
As described above, the Company continues to advance and derisk South Crofty towards production. The Company’s near-term objectives are as follows:
- Complete dewatering of South Crofty mine and refurbishment of NCK shaft;
- Advance detailed project engineering studies;
- Place orders for long lead items of plant and equipment;
- Commence early project works, including initial construction of the groundworks for the processing plant; and
- Arrange project financing for South Crofty.
ABOUT CORNISH METALS
Cornish Metals is a dual-listed mineral exploration and development company (AIM and TSX-V: CUSN) that is advancing the South Crofty tin project towards production. South Crofty:
- is a historical, high-grade, underground tin mine located in Cornwall, United Kingdom and benefits from existing mine infrastructure including multiple shafts that can be used for future operations;
- is permitted to commence underground mining (valid to 2071), construct a new processing facility and for all necessary site infrastructure;
- has a 2024 Preliminary Economic Assessment that validates the Project’s potential (see news release dated April 30, 2024 and the Technical Report entitled “South Crofty PEA”):
- US$201 million after-tax NPV8% and 29.8% IRR
- 3-year after-tax payback
- 4,700 tonnes average annual tin production in years two through six
- Life of mine all-in sustaining cost of US$13,660 /tonne of payable tin
- Total after-tax cash flow of US$626 million from start of production
- would be the only primary producer of tin in Europe or North America. Tin is a Critical Mineral as defined by the UK, American, and Canadian governments as it is used in almost all electronic devices and electrical infrastructure. Approximately two-thirds of the tin mined today comes from China, Myanmar and Indonesia;
- benefits from strong local community, regional and national government support with a growing team of skilled people, local to Cornwall, and could generate up to 320 direct jobs.
The 2024 Preliminary Economic Assessment for South Crofty is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorised as Mineral Reserves. There is no certainty that the 2024 Preliminary Economic Assessment will be realised. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
TECHNICAL INFORMATION
This news release has been reviewed and approved by Mr. Stephen Holley, BSc (Hons), ACSM, MSc, MSCM, CEng MIMMM, Feasibility Study Manager for Cornish Metals who is the designated Qualified Person as the term is defined in Canadian National Instrument 43-101 and the AIM Rules for Companies, and a Competent Person as defined under the JORC Code (2012). Mr. Holley consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.
ON BEHALF OF THE BOARD OF DIRECTORS
“Don Turvey”
Don Turvey
CEO and Director
Engage with us directly at our investor hub. Sign up at: https://investors.cornishmetals.com/link/6eWEjP
For additional information please contact:
| Cornish Metals | Fawzi Hanano | [email protected] |
| Irene Dorsman | [email protected] | |
| Tel: +1 (604) 200 6664 | ||
| SP Angel Corporate Finance LLP | Richard Morrison | Tel: +44 203 470 0470 |
| (Nominated Adviser & Joint Broker) | Charlie Bouverat | |
| Grant Barker | ||
| Hannam & Partners | Matthew Hasson | [email protected] |
| (Joint Broker) | Andrew Chubb | Tel: +44 207 907 8500 |
| Jay Ashfield | ||
| BlytheRay | Tim Blythe | [email protected] |
| (Financial PR) | Megan Ray | Tel: +44 207 138 3204 |
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 may contain 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 and the Company’s ability to obtain financing when required and on terms acceptable to the Company, future or estimated mine life and other activities or achievements of Cornish Metals. 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 release, 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 upcoming work programmes; actual results of proposed exploration activities; possible variations in Mineral Resources or grade; projected dates to commence mining operations; 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. The list is not exhaustive of the factors that may affect Cornish’s forward-looking statements.
Cornish Metals’ 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 the Company 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. Cornish Metals 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.
Caution regarding non-IFRS measures
This news release contains certain terms or performance measures commonly used in the mining industry that are not defined under International Financial Reporting Standards (“IFRS”), including “all-in sustaining costs”. Non-IFRS measures do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by other companies. The data presented is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS and should be read in conjunction with Cornish Metals’ consolidated financial statements and Management Discussion and Analysis, available on its website and on SEDAR+ at www.sedarplus.ca.
Market Abuse Regulation (MAR) 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.
CONSOLIDATED CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION
(Unaudited)
(Expressed in Canadian dollars)
| March 31, 2025 |
December 31, 2024 |
|||||
| ASSETS | ||||||
| Current | ||||||
| Cash | $ | 88,954,141 | $ | 9,589,029 | ||
| Marketable securities | 3,078,376 | 2,874,696 | ||||
| Receivables | 2,862,514 | 2,697,326 | ||||
| Prepaid expenses | 673,554 | 504,902 | ||||
| Deferred financing fees | – | 637,718 | ||||
| 95,568,585 | 16,303,671 | |||||
| Deposits | 112,576 | 64,341 | ||||
| Property, plant and equipment | 27,143,529 | 27,132,244 | ||||
| Exploration and evaluation assets | 90,750,183 | 79,961,014 | ||||
| $ | 213,574,873 | $ | 123,461,270 | |||
| LIABILITIES | ||||||
| Current | ||||||
| Accounts payable and accrued liabilities | $ | 5,735,330 | $ | 4,045,083 | ||
| Deferred income | – | 150,000 | ||||
| Loan liability | – | 13,457,169 | ||||
| 5,735,330 | 17,652,252 | |||||
| NSR liability | 9,826,144 | 9,869,289 | ||||
| 15,561,474 | 27,521,541 | |||||
| SHAREHOLDERS’ EQUITY | ||||||
| Capital stock | 229,373,265 | 128,394,652 | ||||
| Capital contribution | 2,007,665 | 2,007,665 | ||||
| Share-based payment reserve | 1,604,784 | 1,353,933 | ||||
| Foreign currency translation reserve | 11,528,569 | 7,640,757 | ||||
| Deficit | (46,500,884 | ) | (43,457,278 | ) | ||
| 198,013,399 | 95,939,729 | |||||
| $ | 213,574,873 | $ | 123,461,270 | |||
CONSOLIDATED CONDENSED INTERIM STATEMENTS OF LOSS AND
COMPREHENSIVE INCOME (LOSS)
(Unaudited)
(Expressed in Canadian dollars)
| Three months ended | ||||||
| March 31, 2025 | March 31, 2024 | |||||
| EXPENSES | ||||||
| Travel and marketing | $ | 205,667 | $ | 214,138 | ||
| Insurance | 179,920 | 203,063 | ||||
| Office, miscellaneous and rent | 91,226 | 56,505 | ||||
| Professional fees | 541,343 | 275,093 | ||||
| Generative exploration costs | – | 1,191 | ||||
| Regulatory and filing fees | 30,398 | 29,265 | ||||
| Share-based compensation | 162,617 | 123,799 | ||||
| Salaries, directors’ fees and benefits | 1,978,552 | 1,856,144 | ||||
| Total operating expenses | (3,189,723 | ) | (2,759,198 | ) | ||
| Interest income | 133,582 | 265,666 | ||||
| Interest expense | (486,337 | ) | – | |||
| Foreign exchange gain (loss) | 377,892 | (18,900 | ) | |||
| Gain on receipt of non-refundable deposit | 150,000 | – | ||||
| Unrealized loss on marketable securities | (29,020 | ) | (49,237 | ) | ||
| Loss for the period | (3,043,606 | ) | (2,561,669 | ) | ||
| Foreign currency translation | 3,887,812 | 1,413,937 | ||||
| Total comprehensive income (loss) for the period | $ | 844,206 | $ | (1,147,732 | ) | |
| Basic and diluted loss per share | $ | (0.00 | ) | $ | (0.00 | ) |
| Weighted average number of common shares outstanding | 665,925,628 | 535,270,712 | ||||
CONSOLIDATED CONDENSED INTERIM STATEMENTS OF CASH FLOWS
(Unaudited)
(Expressed in Canadian dollars)
| For the three months ended | ||||||
| March 31, 2025 | March 31, 2024 | |||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
| Loss for the period | $ | (3,043,606 | ) | $ | (2,561,669 | ) |
| Items not involving cash: | ||||||
| Share-based compensation | 162,617 | 123,799 | ||||
| Interest expense | 486,337 | – | ||||
| Foreign exchange (gain) loss | (377,892 | ) | 18,900 | |||
| Gain on receipt of non-refundable deposit | (150,000 | ) | – | |||
| Unrealized loss on marketable securities | 29,020 | 49,237 | ||||
| Changes in non-cash working capital items: | ||||||
| (Increase) decrease in receivables | (91,322 | ) | 19,706 | |||
| Increase in prepaid expenses | (214,282 | ) | (16,527 | ) | ||
| Increase in accounts payable and accrued liabilities | 1,008,512 | 1,217,990 | ||||
| Net cash used in operating activities | (2,190,616 | ) | (1,148,564 | ) | ||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
| Acquisition of property, plant and equipment | (81,585 | ) | (2,369,406 | ) | ||
| Acquisition of exploration and evaluation assets | (6,476,236 | ) | (5,525,982 | ) | ||
| Increase in deposits | (45,079 | ) | – | |||
| Net cash used in investing activities | (6,602,900 | ) | (7,895,388 | ) | ||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
| Proceeds from the Fundraise | 91,566,076 | – | ||||
| Share issue costs | (4,052,721 | ) | – | |||
| Increase in deferred financing fees | – | (85,646 | ) | |||
| Net cash provided by (used in) financing activities | 87,513,355 | (85,646 | ) | |||
| Change in cash during the period | 78,719,839 | (9,129,598 | ) | |||
| Cash, beginning of the period | 9,589,029 | 25,791,552 | ||||
| Impact of foreign exchange on cash | 645,273 | 353,795 | ||||
| Cash, end of the period | $ | 88,954,141 | $ | 17,015,749 | ||
| Cash paid during the period for interest | $ | – | $ | – | ||
| Cash paid during the period for income taxes | $ | – | $ | – | ||
CONSOLIDATED CONDENSED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(Unaudited)
(Expressed in Canadian dollars)
| Foreign | ||||||||||||||||
| Capital stock | Share-based | currency | ||||||||||||||
| Number of | Capital | payment | translation | Shareholders’ |
||||||||||||
| shares | Amount | contribution | reserve | reserve | Deficit |
equity – total |
||||||||||
| Balance at December 31, 2023 | 535,270,712 | $ | 128,394,652 | $ | 2,007,665 | $ | 711,690 | $ | 1,369,146 | $ | (42,391,158 | ) | $ | 90,091,995 | ||
| Foreign currency translation | – | – | – | – | 1,413,937 | – | 1,413,937 | |||||||||
| Share-based compensation | – | – | – | 178,149 | – | – | 178,149 | |||||||||
| Loss for the period | – | – | – | – | – | (2,561,669 | ) | (2,561,669 | ) | |||||||
| Balance at March 31, 2024 | 535,270,712 | $ | 128,394,652 | $ | 2,007,665 | $ | 889,839 | $ | 2,783,083 | $ | (44,952,827 | ) | $ | 89,122,412 | ||
| Balance at December 31, 2024 | 535,270,712 | $ | 128,394,652 | $ | 2,007,665 | $ | 1,353,933 | $ | 7,640,757 | $ | (43,457,278 | ) | $ | 95,939,729 | ||
| Share issuance pursuant to Fundraise |
717,143,367 | 105,361,387 | – | – | – | – | 105,361,387 | |||||||||
| Share issue costs | – | (4,382,774 | ) | – | – | – | – | (4,382,774 | ) | |||||||
| Foreign currency translation | – | – | – | – | 3,887,812 | – | 3,887,812 | |||||||||
| Share-based compensation | – | – | – | 250,851 | – | – | 250,851 | |||||||||
| Loss for the period | – | – | – | – | – | (3,043,606 | ) | (3,043,606 | ) | |||||||
| Balance at March 31, 2025 | 1,252,414,079 | $ | 229,373,265 | $ | 2,007,665 | $ | 1,604,784 | $ | 11,528,569 | $ | (46,500,884 | ) | $ | 198,013,399 | ||
