Cornish Metals has proposed raising approximately £135 million to advance its South Crofty tin project in Cornwall, alongside a conditional £11.2 million investment from Glencore and an agreement covering future concentrate sales.
The company set out the fundraising on 20 October 2026. Its proposal combines a placing to institutional investors with conditional direct subscriptions by Glencore, Vision Blue Resources, the National Wealth Fund and certain directors.
The proposed issue price is 60p per new ordinary share. The final amount raised will depend on subscriptions, applicable approvals and completion conditions, rather than the headline target automatically becoming available for the development.
Glencore has also agreed a six-year offtake arrangement for tin concentrate, establishing a prospective sales channel once South Crofty produces material that meets the commercial terms.
An offtake agreement can support financing by giving investors greater visibility of how future output might reach the market. It is not equivalent to tin already mined or revenue already recognised from operating production.
South Crofty is a historic tin mine that closed in 1998. Cornish Metals is seeking to restart production after a programme of pumping, mine access work, engineering and site development.
The proposed fundraising is connected with existing debt finance, including Nordic bond arrangements, and is intended to support the project’s remaining development programme. The money needed from different sources has conditions attached, including satisfactory progress on the equity component.
The company has outlined a production target for 2028, but that remains a planning assumption. Mining projects must address technical, operational, procurement and regulatory milestones before regular commercial output can begin.
Tin is used in electronics and other industrial applications, including soldering. Domestic production could add a source of supply for British and European manufacturers, but the scale of future deliveries will depend on the mine’s eventual output and commercial contracts.
The investment proposal also involves potential dilution of existing shareholders through the issue of new shares. The effect depends on the number sold, their final allocation and the completion of the proposed funding.
Glencore’s participation and sales arrangement should be distinguished from the other conditional subscriptions and the existing bond structure. None of these components means the company has already completed a £135 million capital raise.
Cornish Metals’ finance announcement referred to existing support from Vision Blue Resources and the National Wealth Fund. Their intended participation is framed through conditional subscriptions, not as evidence that the entire financing requirement has already been met.
The company’s development programme includes work on underground access, dewatering and infrastructure needed for mining and processing. Each activity affects the project schedule, and the proposed capital raise is intended to support the next stages rather than retroactively finance completed output.
An equity issue at a stated share price raises a separate question for existing investors: the number of new shares affects ownership percentages. The company must also satisfy any required shareholder and transaction approvals before it can treat the proceeds as available.
Tin concentrate produced under the eventual development would still need to meet applicable quality and delivery arrangements. The six-year Glencore agreement therefore concerns future commercial production, not a quantity of metal already sold or dispatched.
The announcement also includes a proposed retail offer alongside institutional subscriptions, so the financing structure may involve several classes of investors. Its terms and the final amount subscribed are not known simply because Cornish Metals has announced an offer price and target.
The company identified the proposed subscription commitments as conditional on the terms set out in its market announcement. Final allocations, the availability of associated finance and the development timetable remain matters for the completed fundraising and subsequent project disclosures.
The immediate development is a financing and offtake proposal intended to move South Crofty towards production. The company must complete the relevant funding, consents and project works before the planned mine can become an operating source of tin.
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