Cornish Metals acquires 4.5 more acres at South Crofty

(Sharecast News) - Cornish Metals announced on Wednesday that it has acquired an additional 4.5 acres of land adjacent to its South Crofty tin project in Cornwall, increasing its total landholding at the site to approximately 32.5 acres.

The AIM-traded firm said the newly-acquired parcel, purchased from Cornwall Council, would provide direct access to Dundance Lane and serve as the location for a new mine entrance, office, stores, and workshop.

It said the South Crofty project, which is 100% owned and fully permitted by the company, is a former high-grade underground tin mine currently being advanced toward production.

Cornish Metals reported a cash position of �47.9m as at 31 March.

A 2024 preliminary economic assessment for South Crofty outlined a post-tax net present value of $201m and an internal rate of return of 29.8%, with average tin production of 4,700 tonnes annually between years two and six.

The project was forecast to generate $626m in post-tax cash flow over its life, with a payback period of three years and life-of-mine all-in sustaining costs of $13,660 per tonne of payable tin.

If brought into production, South Crofty would be the only primary tin producer in Europe or North America.

The project was designated as critical infrastructure by the UK, US and Canadian governments due to tin's role in electronic and electrical systems, with the board saying it had received strong support at local, regional, and national levels.

Cornish Metals said it expected the project could create up to 320 direct jobs.

At 1100 GMT, shares in Cornish Metals were up 2% at 8.16p.

Reporting by Josh White for Sharecast.com.