Cornish Metals Inc., a mineral exploration and development company focused on its 100% owned and permitted South Crofty tin project in Cornwall, UK, has announced the sale of its royalty interests in the Mactung and Cantung tungsten projects located in Northern Canada. The sale, made to Elemental Altus Royalties Corp., is valued at US$4,500,000.
Transaction details:
- Immediate payment: Elemental Altus will pay Cornish Metals US$3,000,000 upon closing of the transaction.
- Deferred payment: An additional US$1,500,000 will be paid 12 months after the closing date.
- Deferred obligation: Elemental Altus will assume an obligation to pay Teck Resources Limited C$1,500,000, contingent upon a development decision at Mactung or the resumption of production at Cantung.
Cornish Metals acquired these royalties in March 2016 for C$1,500,000. The Mactung royalty entitles the holder to a 4% net smelter returns (NSR) royalty on the Mactung tungsten project, while the Cantung royalty provides a 1% NSR on the Cantung tungsten project.
Ken Armstrong, Interim CEO and Director of Cornish Metals, stated, “This sale follows our recent divestment of the Nickel King project and underscores our commitment to advancing the South Crofty tin project. We are focused on bringing South Crofty into production by 2027.”
About the South Crofty project:
- Historical significance: South Crofty is a historic high-grade underground tin mine with production dating back to 1592, ceasing in 1998 after over 400 years of continuous operation.
- Permits and infrastructure: The project holds valid planning permission and environmental permits for mining and construction, with existing mine infrastructure including multiple shafts.
- Preliminary Economic Assessment (PEA): The 2024 PEA highlights a robust economic outlook with a US$201 million after-tax NPV8%, a 29.8% IRR, and a 3-year after-tax payback period. The project is expected to produce an average of 4,700 tonnes of tin annually in its initial years, with a life-of-mine all-in sustaining cost of US$13,660 per tonne.
Strategic importance:
- Critical mineral: Tin is recognized as a critical mineral by the UK, US, and Canadian governments, essential for electronic and electrical infrastructure.
- European and North American production: There is no primary tin production in Europe or North America, making South Crofty a strategically significant project.
- Local impact: The project is supported by the local community and government, with potential to generate up to 320 direct jobs.
Note: The 2024 PEA includes inferred mineral resources considered too speculative to be categorized as mineral reserves. There is no certainty that the PEA results will be realized, and mineral resources that are not reserves do not guarantee economic viability.
