New and existing institutional investors participated in an oversubscribed £8 million placing of the company’s common shares during a two-week virtual roadshow. An additional investment of £206,000 was raised through an offer to high net worth investors.
Approximately 117.22 million common shares, each priced at 7 pence, were issued pursuant to the equity fundraising. Upon admission to the AIM, the company will have about 267.14 million shares issued and outstanding.
In conjunction with the fundraising, a total of C$7.17 million of loan notes held by Osisko Gold Royalties will be redeemed, and a significant proportion of the company’s security was released in exchange for two perpetual net smelter royalties granted to Osisko.
Proceeds raised by Cornish Metals will be used to fast-track a drilling exploration program at United Downs to define a mineral resource. Its longer-term plan is to bring the South Crofty mine back into production.
The company intends to produce conflict-free “clean tin” to provide security of supply for Europe and North America.
