Cornish Metals Inc. - COMPLETION OF SALE OF MACTUNG & CANTUNG ROYALTIES
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Released
Announcement PDF
RNS Number : 0592Z
Cornish Metals Inc.
05 August 2024
CORNISH METALS COMPLETES SALE OF MACTUNG AND CANTUNG ROYALTIES
Vancouver, August 4, 2024
Cornish Metals Inc.(AIM/TSX-V: CUSN) ("Cornish Metals" or the "Company"), a mineral
exploration and development company focused on advancing its 100% owned and permitted
South Crofty tin project in Cornwall, United Kingdom, reports that it has completed the sale of its
royalty interests on the Mactung and Cantung tungsten projects located in Northern Canada to
Elemental Altus Royalties Corp. for a total cash consideration of US$4,500,000 (see news release
datedJuly 21, 2024). The first cash payment of US$3,000,000 has been received by the Company,
with the balance due by August 1, 2025.
ABOUT CORNISH METALS
Cornish Metals is a dual-listed mineral exploration and development company (AIM and TSX-V:
CUSN) focused on advancing the South Crofty high-grade, underground tin project through to a
construction decision, as well as exploring its additional mineral rights, located in Cornwall,
United Kingdom.
·
South Crofty is a historical, high-grade, underground tin mine that started production in 1592 and
continued operating until 1998 following over 400 years of continuous production;
·
The Project possesses Planning Permission for underground mining (valid to 2071), to construct new
processing facilities and all necessary site infrastructure, and an Environmental Permit to dewater the
mine;
·
South Crofty is one of the highest grade tin Mineral Resources globally and benefits from existing mine
infrastructure including multiple shafts that can be used for future operations;
·
The 2024 Preliminary Economic Assessment for South Crofty validates the Project's potential (see news
release datedApril 30, 2024and the Technical Report entitled "South Crofty PEA"):
o US$201 million after-tax NPV8% and 29.8% IRR
o 3-year after-tax payback
o 4,700 tonnes average annual tin production in years two through six
o Life of mine all-in sustaining cost of US$13,660 /tonne of payable tin
o Total after-tax cash flow of US$626 million from start of production
· Tin is a Critical Mineral as defined by the UK, American, and Canadian governments;
· Tin connects almost all electronic and electrical infrastructure, making it critical to the energy transition responsible sourcing of critical minerals and security of supply are key factors in the energy transition and
technology growth;
· Approximately two-thirds of the tin mined today comes from China, Myanmar and Indonesia;
· There is no primary tin production in Europe or North America;
· South Crofty benefits from strong local community, regional and national government support.
· Cornish Metals has a growing team of skilled people, local to Cornwall, and the Project could generate up to
320 direct jobs.
The 2024 Preliminary Economic Assessment for South Crofty is preliminary in nature and includes
inferred mineral resources that are considered too speculative geologically to have the economic
considerations applied to them that would enable them to be categorised as mineral reserves.
There is no certainty that the 2024 Preliminary Economic Assessment will be realised. Mineral
resources that are not mineral reserves do not have economic viability.
TECHNICAL INFORMATION
This news release has been reviewed and approved by Mr Owen Mihalop, MCSM, BSc (Hons), MSc,
FGS, MIMMM, CEng, Chief Operating Officer for Cornish Metals Inc. who is the designated
Qualified Person under NI 43-101 and a Competent Person as defined under the JORC Code
(2012). Mr. Mihalop consents to the inclusion in this announcement of the matters based on his
information in the form and context in which it appears.
ON BEHALF OF THE BOARD OF DIRECTORS
"Kenneth A. Armstrong"
Kenneth A. Armstrong P.Geo.
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For additional information please contact:
Cornish Metals
Fawzi Hanano
Irene Dorsman
investors@cornishmetals.com
info@cornishmetals.com
Tel: + 1(604) 200 6664
SP Angel Corporate Finance
LLP
(Nominated Adviser & Joint
Broker)
Richard Morrison
Charlie Bouverat
Grant Barker
Tel: +44 203 470 0470
Cavendish Capital
Limited
(Joint Broker)
Markets Derrick Lee
Neil McDonald
Leif Powis
Tel: +44 131 220 6939
Tel: +44 207 220 0500
Hannam & Partners
(Financial Adviser)
Matthew Hasson
Andrew Chubb
Jay Ashfield
cornish@hannam.partners
Tel: +44 207 907 8500
BlytheRay
(Financial PR)
Tim Blythe
Megan Ray
cornishmetals@blytheray.com
Tel: +44 207 138 3204
up
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Caution regarding forward looking statements
This news release contains certain "forward-looking information" and "forward-looking statements" (collectively, "forwardlooking statements"). Forward-looking statements include predictions, projections, outlook, guidance, estimates and
forecasts and other statements regarding future plans and operations, the realisation, cost, timing and extent of mineral
resource or mineral reserve estimates, estimation of commodity prices, currency exchange rate fluctuations, estimated
future exploration expenditures, costs and timing of the development of new deposits, success of exploration activities,
permitting time lines, requirements for additional capital and the Company's ability to obtain financing when required and
on terms acceptable to the Company, future or estimated mine life and other activities or achievements of Cornish Metals,
including but not limited to: the balance of the cash consideration due to Cornish in respect of the sale of the Mactung and
Cantung royalty interests; mineralisation at South Crofty, mine dewatering and construction requirements; the
development, operational and economic results of the preliminary economic assessment, including cash flows, capital
expenditures, development costs, extraction rates, recovery rates, mining cost estimates and returns; estimation of mineral
resources; statements about the estimate of mineral resources and production of minerals; magnitude or quality of
mineral deposits; anticipated advancement of the South Crofty project mine plan; exploration potential and project growth
opportunities for the South Crofty tin project and other Cornwall mineral properties, the Company's ability to evaluate and
develop the South Crofty tin project and other Cornwall mineral properties, strategic vision of Cornish Metals and
expectations regarding the South Crofty mine, timing and results of projects mentioned. Forward-looking statements are
often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "forecast",
"expect", "potential", "project", "target", "schedule", "budget" and "intend" and statements that an event or result "may",
"will", "should", "could", "would" or "might" occur or be achieved and other similar expressions and includes the negatives
thereof. All statements other than statements of historical fact included in this news release, are forward-looking
statements that involve various risks and uncertainties and there can be no assurance that such statements will prove to
be accurate and actual results and future events could differ materially from those anticipated in such statements.
Forward-looking statements are subject to risks and uncertainties that may cause actual results to be materially different
from those expressed or implied by such forward-looking statements, including but not limited to: risks related to receipt
of regulatory approvals, risks related to general economic and market conditions; risks related to the availability of
financing; the timing and content of upcoming work programmes; actual results of proposed exploration activities;
possible variations in Mineral Resources or grade; outcome of any future feasibility studies; projected dates to commence
mining operations; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title
disputes, claims and limitations on insurance coverage and other risks of the mining industry; changes in national and
local government regulation of mining operations, tax rules and regulations. The list is not exhaustive of the factors that
may affect Cornish's forward-looking statements.
Cornish Metals' forward-looking statements are based on the opinions and estimates of management and reflect their
current expectations regarding future events and operating performance and speak only as of the date such statements
are made. Although the Company has attempted to identify important factors that could cause actual actions, events or
results to differ from those described in forward- looking statements, there may be other factors that cause such actions,
events or results to differ materially from those anticipated. There can be no assurance that forward-looking statements
will prove to be accurate and accordingly readers are cautioned not to place undue reliance on forward-looking
statements. Accordingly, readers should not place undue reliance on forward-looking statements. Cornish Metals does not
assume any obligation to update forward-looking statements if circumstances or management's beliefs, expectations or
opinions should change other than as required by applicable law.
Caution regarding non-IFRS measures
This news release contains certain terms or performance measures commonly used in the mining industry that are not
defined under International Financial Reporting Standards ("IFRS"), including "all-in sustaining costs". Non-IFRS measures
do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar
measures employed by other companies. The data presented is intended to provide additional information and should
not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS and
should be read in conjunction with Cornish Metals' consolidated financial statements and Management Discussion and
Analysis, available on its website and on SEDAR+ at www.sedarplus.ca.
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by the Company to constitute inside information pursuant
to Article 7 of EU Regulation 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal)
Act 2018 as amended.
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