Cornish Metals, the AIM-listed company developing the South Crofty tin project in Cornwall, has drawn the second tranche of its secured credit facilities with the National Wealth Fund and Vision Blue Resources.
The tranche was uncommitted and available at the lenders' discretion, comprising £13.9 million from the National Wealth Fund and $9.1 million (approximately £6.7 million) from Vision Blue Resources.
The facilities were first agreed on 15 May, and their terms remain unchanged.
Proceeds will fund continued underground development, construction of surface facilities and infrastructure, and general corporate purposes.
"Drawing the second tranche keeps South Crofty moving at pace while we finalise the longer-term funding package on terms that are favourable for investors", said Don Turvey, chief executive of Cornish Metals.
The National Wealth Fund and Vision Blue Resources are Cornish Metals' two largest shareholders.
The company is also progressing a broader project financing package for South Crofty, holding discussions with strategic offtakers and institutional investors.
South Crofty would be a low environmental impact underground mine with zero surface tailings, and is positioned as a potential first primary tin producer in Europe or North America.
Tin is classified as a critical mineral by the UK, US and Canadian governments, with roughly two-thirds of current global supply mined in China, Myanmar and Indonesia.
News Intelligence what this means for the company
Cornish Metals has drawn £20.6 million in a second tranche from its two largest shareholders—the National Wealth Fund and Vision Blue Resources—to fund continued underground development at South Crofty. The draw was uncommitted and discretionary, underscoring reliance on shareholder goodwill rather than contractual obligation; the company is simultaneously pursuing a broader project financing package with strategic offtakers and institutional investors, suggesting the current facility is a bridge rather than the final funding solution.
The draw keeps development moving but highlights funding dependency: at 13% per annum interest with mandatory prepayment within 10 business days of any equity raise, the facility is expensive and short-dated. Success hinges on closing the longer-term institutional financing package on acceptable terms before the bridge capital is exhausted.
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