The Canadian listed Celeste Copper Corporation has agreed with the current owners of the old South Crofty mine in Cornwall, UK to fund exploration and development over the next year in return for a 25% stake in the project. Celeste’s initial financial input will be UK£4.67 million (US$7.7 million). It will subsequently have an option to increase its stake to 50% or 60% by September 2013 by additional payments of £9.33 million or £16.33 million and could ultimately acquire 100% of the holding company Cornish UK. Denis Clement, President and CEO of Celeste stated: “We are delighted to have the opportunity to participate in the expansion and redevelopment of the historic South Crofty mining region in Cornwall.”
The current shareholders in South Crofty – through a complex structure of offshore companies – are Cassiterite Limited (a vehicle for the investment arm of Trafigura and other investors) and Baseresult Limited, which originally acquired the property in 2001. Subject to regulatory approvals and due diligence, the deal is expected to be concluded by the end of June.
South Crofty closed in March 1998, having produced 2,250 tonnes of tin-in-concentrate in its last full year of operation. The mine is an amalgamation of twelve mines that were historically mined primarily for tin and copper. The properties are located between Redruth and Camborne in Cornwall, England and comprise approximately 150 square kilometers of mineral rights in this historic mining district. Plans for the re-start of the operation have however been delayed due to planning disputes and other issues.
