Cornish Metals has entered into secured credit facilities with National Wealth Fund and Vision Blue Resources totalling up to approximately £52 million, the company announced on 15 May.
Up to approximately £16 million of the proceeds will credit an escrow account tied to the previously announced US$210 million Nordic bond issue, with the remainder earmarked for underground mine development and shaft refurbishment, surface facilities and general corporate purposes at the South Crofty tin project.
The lenders are also substantial shareholders in Cornish Metals, holding 28.45% (National Wealth Fund) and 29.08% (Vision Blue), and the facilities are treated as related party transactions with independent directors-excluding James Whiteside and Tony Trahar respectively-having consulted the nominated adviser and judged the terms fair and reasonable.
The principal split is £35 million from National Wealth Fund and US$22.75 million from Vision Blue, with committed Tranche 1 facilities of £21.1 million and US$13.7 million and uncommitted Tranche 2 availability of £13.9 million and US$9.05 million.
“This funding provides the Company with the financial runway to progress through to the final investment decision for the South Crofty project while continuing to advance and derisk the project,” Don Turvey, CEO, said.
