Cornish Metals Releases Unaudited Financial Statements and Management's Discussion and Analysis for the Six Months Ended 30 June 2025
1. Cornish Metals raised £57.4 million for South Crofty project advancement.
2. Grant funding of £4.2 million secured for Bartles Foundry project.
3. Mine dewatering substantially underway, completion expected by mid-2026.
4. New management appointments strengthen project execution at South Crofty.
5. Company re-domiciliation to the UK expected to complete in Q4 2025.
The substantial fundraise indicates strong investor confidence in Cornish Metals. Historical trends show that successful funding often leads to positive stock performance in mining stocks, such as Northern Dynasty Minerals after similar capital raises.
How important is it?
The results and raised funds directly affect Cornish Metals' future projects and production capability, enhancing its market position.
Why Long Term?
The ongoing developments at South Crofty will likely take time to reflect in stock price. Similar projects in mining typically take several years before financial results significantly impact share prices.
VANCOUVER, British Columbia, Aug. 14, 2025 (GLOBE NEWSWIRE) --
Cornish Metals Inc. (TSX-V/AIM: CUSN) ("Cornish Metals" or the "Company"), a mineral exploration and development company focused on advancing its wholly owned and permitted South Crofty tin project in Cornwall, United Kingdom, is pleased to announce that it has released its unaudited financial statements and management, discussion and analysis ("MD&A") for the six months ended June 30, 2025. The reports are available under the Company's profile on SEDAR+ (www.sedarplus.ca) and on the Company's website (www.cornishmetals.com).
Highlights for the six months ended June 30, 2025 and for the period ending August 13, 2025
(All figures expressed in Canadian dollars unless otherwise stated)
Strategic investment and fundraise (the "Fundraise") (news releases dated January 28-31, 2025):
The Fundraise totalling £57.4 million announced on January 28-31, 2025 was anchored by the National Wealth Fund Limited ("NWF") and Vision Blue Resources Limited ("Vision Blue"), investing £28.6 million and £18.1 million, respectively, with a further £10.7 million from existing shareholders and new investors, including £1.4 million from a retail offer;
The Fundraise is expected to provide financial runway through to the end of Q1 2026 and will enable the Company to further de-risk South Crofty and advance it towards a formal final investment decision;
Grant funding investment (news release dated June 11, 2025):
South Crofty's Bartles Foundry project received grant funding of up to £4.2 million from the Cornwall and Isles of Scilly Good Growth Programme, which is managed by Cornwall Council and funded by the UK Government through the UK Shared Prosperity Fund;
The first claim in the amount of approximately £0.7 million was submitted to the Council in late July and is expected to be received by the end of August 2025.
Key long-lead item orders (news release dated June 3, 2025):
Orders have been placed with Qualter Hall & Company Limited ("Qualter Hall") for the design, manufacture, supply, installation and commissioning of the production and service winders to be used at South Crofty's New Cook's Kitchen ("NCK") shaft.
Mine dewatering and NCK shaft refurbishment progress (news releases dated July 23 and August 12, 2025):
Mine dewatering has resumed near full capacity following completion of staged maintenance of the submersible pumps that resulted in reduced pump availability and delays in the servicing one of the pump motors;
Refurbishment of NCK shaft is progressing well with advance rates back in-line with the plan for mine dewatering;
The mid-shaft pump station at approximately 360 metres below surface has been reached. Securing the work area and stabilising of the underground chamber of the pump station, enabling the installation of new permanent pumps, has commenced;
Mine dewatering and NCK shaft refurbishment to the lower pump station level (approximately 730 metres below surface) are expected to be completed by mid-2026.
Start of surface works at South Crofty (news release dated July 23, 2025):
The first major phase of surface redevelopment at South Crofty started in early July with refurbishment of the Mine Dry building and demolition of the old Bartles Foundry buildings;
Excavation and earthworks for the processing plant are expected to commence in August 2025.
Senior management appointments (news release dated April 27, 2025):
Strengthening of the project and operations teams at South Crofty with the appointments of Dave Howe as General Manager and Guillermo Alcazar as Project Director;
Mr. Howe has 35 years of open pit and underground hard rock mining (including narrow vein) operational and exploration experience, of which 24 years were in executive and senior management roles;
Mr. Alcazar is a project executive with over two decades of global experience leading and overseeing multimillion-dollar complex portfolios of mining, heavy industrial and infrastructure projects across diverse development stages.
Sale of North American Assets:
Mactung and Cantung royalties: the deferred consideration of US$1.5 million was received from Elemental Altus Royalties Corp. ("Elemental Altus") on July 23, 2025;
Nickel King: the Company received the final cash payment of $250,000 from Northera Resources Ltd. ("Northera") on July 30, 2025;
Sleitat: discussions are underway for the disposal of the Sleitat tin-silver exploration asset located in Alaska.
Purchase of 4.5 acres of land from Cornwall Council (news release dated April 1, 2025):
The purchased land is immediately adjacent to existing surface land owned by Cornish Metals and provides direct access to the main road at Dudnance Lane, where a new entrance to the mine site is planned and where new mine workshops and stores will be located.
Publication of sustainability report and Digbee rating (news releases dated June 25 and August 11, 2025):
The Company published its inaugural sustainability report for the 2024 reporting year marking a meaningful milestone;
The report outlines the Company's performance and progress across key sustainability pillars, including governance and ethics, social responsibility and environmental stewardship, establishing a baseline for future reporting;
Cornish Metals was awarded an inaugural overall sustainability rating of "A" by Digbee.
The re-domiciliation of the Company from Canada to the UK is well advanced and expected to be completed in Q4 2025.
Don Turvey, CEO and Director of Cornish Metals, stated: "The Cornish Metals team continues to work hard on advancing and derisking South Crofty towards a restart of responsible tin production. The pace of activities across the South Crofty site on-surface and underground is ramping up steadily. Important milestones were achieved in the first half of 2025, namely the £57.4 million fundraise that was supported by existing and new shareholders including Vision Blue and the UK's National Wealth Fund, the placing of orders for the production and service winders that are key long-lead items and the strengthening of our operations and projects leadership. The publication of the Company's first sustainability report also marks an important step in formalising our approach to sustainability and strengthening transparency and provides a strong foundation for continued progress."
Review of activities
Strategic investment and fundraise
On January 28-31, 2025, the Company announced a Fundraise totaling £57.4 million that was anchored by NWF and Vision Blue, investing £28.6 million and £18.1 million, respectively. A further £10.7 million was raised from existing shareholders and new investors, including £1.4 million from a retail offer.
The Fundraise is expected to provide financial runway through to the end of Q1 2026 and enables the Company to further de-risk the South Crofty tin project and advance it towards a formal final investment decision by:
bringing the South Crofty tin project nearer to production by funding certain elements of the South Crofty tin project's initial capital expenditure requirements;
commencing early project works, including initial construction of the groundworks for the processing plant;
placing orders for long-lead items of plant and equipment; and
advancing detailed project engineering studies.
Grant funding investment
South Crofty's Bartles Foundry project received grant funding of up to £4.2 million from the Cornwall and Isles of Scilly Good Growth Programme, which is managed by Cornwall Council and funded by the UK Government through the UK Shared Prosperity Fund. The grant funding is equivalent to a maximum of 62% of the total Bartles Foundry project cost estimated at approximately £6.8 million for the construction of workshops and stores on the Bartles Foundry site. This will support the requirements associated with South Crofty moving to production and includes the cost for the purchase of 4.5 acres of land from Cornwall Council mentioned further below (refer news release dated June 11, 2025). The first claim in the amount of approximately £0.7 million was submitted to the Council in late July and is expected to be received by the end of August 2025.
Key long-lead item orders
Orders have been placed with Qualter Hall for the design, manufacture, supply, installation and commissioning of the production and service winders to be used at South Crofty's NCK shaft. The two winders are long-lead items and constitute an important use of proceeds from the fundraise completed in March 2025.
Mine dewatering and refurbishment of New Cook's Kitchen Shaft
Mine dewatering has resumed near full capacity following completion of staged maintenance of the submersible pumps that resulted in reduced pump availability and delays in the servicing one of the pump motors. Refurbishment of NCK shaft is progressing well with advance rates back in-line with the plan for mine dewatering.
The mid-shaft pump station at approximately 360 metres below surface has been reached. Securing the work area and stabilising of the underground chamber of the pump station, enabling the installation of new permanent pumps, has commenced. Shaft refurbishment and mine dewatering will continue in parallel with this work, down to the current level of the submersible pumps at approximately 380 metres below surface.
Work on the pump station is expected to be completed during Q4 2025. The submersible pumps will then be lowered to the lower pump station level (approximately 730 metres below surface) and mine dewatering and shaft refurbishment will resume at that point. Mine dewatering and NCK shaft refurbishment to the lower pump station level are expected to be completed by mid-2026.
Start of surface works at South Crofty
The first major phase of surface redevelopment at South Crofty started in early July with refurbishment of the Mine Dry building and demolition of the old Bartles Foundry buildings. Excavation and earthworks for the processing plant are expected to commence in August 2025.
Senior management appointments
On April 27, 2025, the Company announced the appointments of Dave Howe as General Manager and Guillermo Alcazar as Project Director, strengthening the project and operations teams at South Crofty as the project transitions to construction and development.
Mr. Howe has 35 years of open pit and underground hard rock mining (including narrow vein) operational and exploration experience, of which 24 years were in executive and senior management roles. He has experience in rehabilitation of old previously operating wet mines, including drilling, dewatering and developing them back into successful operation, and has also managed different narrow vein mines.
Mr. Alcazar is a project executive with over two decades of global experience leading and overseeing multimillion-dollar complex portfolios of mining, heavy industrial and infrastructure projects across diverse development stages.
The Company also announced that Owen Mihalop, Chief Operating Officer, left the Company with effect from April 25, 2025 in order to pursue new opportunities.
Land purchase from Cornwall Council
On April 1, 2025, the Company announced the purchase of a 4.5-acre land parcel from Cornwall Council that is immediately adjacent to South Crofty surface infrastructure. The land purchase provides direct access to the main road at Dudnance Lane where a new entrance to the mine site is planned and where new mine workshops and stores will be located. This acquisition increased the total land area at South Crofty owned by the Company to approximately 32.5 acres.
Sale of North American assets
Mactung and Cantung royalties: the deferred consideration of US$1.5 million was received from Elemental Altus on July 23, 2025.
Nickel King property: on July 30, 2025, the Company received the final cash payment of $250,000 from Northera, resulting in the agreed aggregate cash consideration of $500,000 being received in full. The Company will transfer the Nickel King property to Northera upon finalisation of a definitive sales agreement. Upon completion of a go-public transaction by Northera, resulting in a listing of securities on the TSX Venture Exchange, or other stock exchange, Northera will issue to Cornish Metals common shares in the capital of Northera having an aggregate market value equal to $5 million.
Sleitat: the Company is in discussions to dispose of the Sleitat tin-silver exploration asset located in Alaska, USA.
Publication of sustainability report and Digbee rating
The Company published its inaugural sustainability report for the 2024 reporting year marking a meaningful milestone. The report, published in accordance with the Global Reporting Initiative ("GRI") Standards, outlines the Company's performance and progress across key sustainability pillars, including governance and ethics, social responsibility and environmental stewardship, establishing a baseline for future reporting.
Cornish Metals was awarded an inaugural overall sustainability rating of "A" by an independent panel of globally recognised sustainability experts from Digbee. This initial submission provides insights to enhance risk mitigation strategies, ensuring well-informed decision-making as the Company advances towards the responsible operation of South Crofty.
Financial highlights for the six months ended June 30, 2025 and June 30, 2024
Six months ended
June 30, 2025
June 30, 2024
(Expressed in Canadian dollars)
Total operating expenses
7,618,614
4,561,792
Loss for the period
6,331,711
4,126,256
Net cash used in operating activities
(6,275,976
)
(2,281,351
)
Net cash used in investing activities
(17,906,530
)
(17,830,778
)
Net cash provided by (used in) financing activities
87,513,355
(96,159
)
Cash at end of the period
73,777,481
6,048,987
Operating expenses have risen reflecting increased professional fees associated with the planned re-domiciliation of the Company from Canada to the UK and costs relating to more corporate activity as the South Crofty tin project is advanced;
Project related expenditure of $11.3 million for the advancement of South Crofty, primarily relating to NCK shaft re-access & refurbishment, preparation for the refurbishment of the mid-shaft pump station, ongoing project engineering studies and preliminary work for the construction of workshops & stores;
Dewatering costs of $3.1 million for power, reagents, sludge disposal and maintenance of the water treatment plant ("WTP");
Receipt of $87.5 million in net proceeds from the Fundraise after repayment of the debt facility with Vision Blue which was settled through a set-off with the Fundraise; and
Cash increased by $63.3 million to $73.8 million at the period end due to the proceeds received from the Fundraise offset by ongoing development activities at the South Crofty tin project.
Outlook
As described above, the Company continues to advance and de-risk the South Crofty tin project towards production. The Company's near-term objectives are as follows:
Complete dewatering of South Crofty mine and refurbishment of NCK shaft;
Advance detailed engineering and Front End Engineering Design ("FEED");
Place deposits for long lead items of plant and equipment;
Commence and advance early project works, including initial construction of the groundworks for the processing plant; and
Arrange project financing for the South Crofty tin project.
ABOUT CORNISH METALS
Cornish Metals is a dual-listed mineral exploration and development company (TSXV:CUSN) that is advancing the South Crofty tin project towards production. South Crofty:
is a historical, high-grade, underground tin mine located in Cornwall, United Kingdom and benefits from existing mine infrastructure including multiple shafts that can be used for future operations;
is permitted to commence underground mining (valid to 2071), construct a new processing facility and for all necessary site infrastructure;
would be the only primary producer of tin in Europe or North America. Tin is a Critical Mineral as defined by the UK, American, and Canadian governments as it is used in almost all electronic devices and electrical infrastructure. Approximately two-thirds of the tin mined today comes from China, Myanmar and Indonesia;
benefits from strong local community, regional and national government support with a growing team of skilled people, local to Cornwall, and could generate over 300 direct jobs.
The Bartles Foundry project is part-funded by the UK Government through the UK Shared Prosperity Fund. Cornwall Council is responsible for managing projects funded by the UK Shared Prosperity Fund through the Cornwall and Isles of Scilly Good Growth Programme.
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 may contain certain "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements"). Forward-looking statements include predictions, projections, outlook, guidance, estimates and forecasts and other statements regarding future plans, 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. 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; 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. 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.
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.
CONSOLIDATED CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION (Unaudited) (Expressed in Canadian dollars)
June 30, 2025
December 31, 2024
ASSETS
Current
Cash
$
73,777,481
$
9,589,029
Marketable securities
3,108,832
2,874,696
Receivables
3,650,460
2,697,326
Prepaid expenses
1,219,926
504,902
Deferred financing fees
-
637,718
81,756,699
16,303,671
Deposits
113,352
64,341
Property, plant and equipment
29,344,240
27,132,244
Exploration and evaluation assets
100,771,833
79,961,014
$
211,986,124
$
123,461,270
LIABILITIES
Current
Accounts payable and accrued liabilities
$
6,507,324
$
4,045,083
Deferred income
-
150,000
Loan liability
-
13,457,169
6,507,324
17,652,252
NSR liability
9,340,224
9,869,289
15,847,548
27,521,541
SHAREHOLDERS' EQUITY
Capital stock
229,373,265
128,394,652
Capital contribution
2,007,665
2,007,665
Share-based payment reserve
1,692,422
1,353,933
Foreign currency translation reserve
12,854,213
7,640,757
Deficit
(49,788,989
)
(43,457,278
)
196,138,576
95,939,729
$
211,986,124
$
123,461,270
CONSOLIDATED CONDENSED INTERIM STATEMENTS OF LOSS AND COMPREHENSIVE LOSS (Unaudited) (Expressed in Canadian dollars)
Three months ended
Six months ended
June 30, 2025
June 30, 2024
June 30, 2025
June 30, 2024
EXPENSES
Travel and marketing
$
231,911
$
233,349
$
437,578
$
447,487
Insurance
184,241
196,444
364,161
399,507
Office, miscellaneous and rent
140,829
61,702
232,055
118,207
Professional fees
2,219,506
533,674
2,760,849
808,767
Generative exploration expense
2,278
4,513
2,278
5,704
Regulatory and filing fees
22,079
22,396
52,477
51,661
Share-based compensation
(11,011
)
7,000
151,606
130,799
Salaries, directors' fees and benefits
1,639,058
743,516
3,617,610
2,599,660
Total operating expenses
(4,428,891
)
(1,802,594
)
(7,618,614
)
(4,561,792
)
Interest income
856,492
142,888
990,074
408,554
Interest expense
-
-
(486,337
)
-
Foreign exchange gain (loss)
275,131
(9,140
)
653,023
(28,040
)
Gain on receipt of non-refundable deposit
-
91,296
150,000
91,296
Unrealized gain (loss) on marketable securities
9,163
12,963
(19,857
)
(36,274
)
Loss for the period
(3,288,105
)
(1,564,587
)
(6,331,711
)
(4,126,256
)
Foreign currency translation
1,325,644
977,535
5,213,456
2,391,472
Total comprehensive loss for the period
$
(1,962,461
)
$
(587,052
)
$
(1,118,255
)
$
(1,734,784
)
Basic and diluted loss per share
$
(0.00
)
$
(0.00
)
$
(0.00
)
$
(0.00
)
Weighted average number of common shares outstanding:
1,252,414,079
535,270,712
960,789,988
535,270,712
CONSOLIDATED CONDENSED INTERIM STATEMENTS OF CASH FLOWS (Unaudited) (Expressed in Canadian dollars)
For the six months ended
June 30, 2025
June 30, 2024
CASH FLOWS FROM OPERATING ACTIVITIES
Loss for the period
$
(6,331,711
)
$
(4,126,256
)
Items not involving cash:
Share-based compensation
151,606
130,799
Interest expense
486,337
-
Foreign exchange (gain) loss
(653,023
)
28,040
Gain on receipt of non-refundable deposit
(150,000
)
(91,296
)
Unrealized loss on marketable securities
19,857
36,274
Changes in non-cash working capital items:
(Increase) decrease in receivables
(949,755
)
264,739
(Increase) decrease in prepaid expenses
(224,802
)
64,364
Increase in accounts payable and accrued liabilities
1,375,515
1,411,985
Net cash used in operating activities
(6,275,976
)
(2,281,351
)
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property, plant and equipment
(2,811,621
)
(5,968,493
)
Acquisition of exploration and evaluation assets
(15,049,324
)
(11,968,598
)
Proceeds from receipt of non-refundable deposit
-
91,296
(Increase) decrease in deposits
(45,585
)
15,017
Net cash used in investing activities
(17,906,530
)
(17,830,778
)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the Fundraise
91,566,076
-
Share issue costs
(4,052,721
)
-
Increase in deferred financing fees
-
(96,159
)
Net cash provided by (used in) financing activities
87,513,355
(96,159
)
Change in cash during the period
63,330,849
(20,208,288
)
Cash, beginning of the period
9,589,029
25,791,552
Impact of foreign exchange on cash
857,603
465,723
Cash, end of the period
$
73,777,481
$
6,048,987
Cash paid during the period for interest
$
-
$
-
Cash paid during the period for income taxes
$
-
$
-
CONSOLIDATED CONDENSED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Expressed in Canadian dollars)
