Cornish Metals Inc. has entered into a non-dilutive £7 million (US$9.1m) secured credit facility with its 25.95% shareholder Vision Blue Resources Ltd to continue developing the South Crofty tin project.
DISCUSSIONS
The facility, with a term until 31 March 2025 and carrying 15% interest per annum, will be used for general operating and corporate purposes.
Chief executive Don Turvey said that the company had been engaging with investment entities interested in financing South Crofty’s development.
“The Vision Blue credit facility, combined with the recently completed non-core asset sales, provides capital to advance these discussions further with the support of our recently appointed financial adviser, Endeavour Financial, and develop optionality as we continue to further derisk the project, ahead of securing project financing for the construction of South Crofty.”
In July Cornish Metals sold its royalties on the Mactung and Cantung tungsten projects for US$4.5m and in June its Nickel King and Opescal Lake nickel-copper-cobalt properties for C$8m cash, both in Canada.