Australian tin producer Metals X (ASX: MLX) has announced it has committed to purchase A$4.64 million (£2.86 million) of shares in First Tin (LSE: 1SN), representing approximately 23% of the company.
Metals X, which owns a 50% stake in the Renison mine in Tasmania, will purchase 60 million on-market shares from Clara Resources and subscribe for an additional 11.5 million new shares, pending First Tin’s shareholder approval. The producer will subsequently have a holding of approximately 23% of the enlarged issued ordinary share capital in the London-listed junior mining company.
First Tin has been actively developing the recently expanded Tellerhauser resource in Germany and the Taronga project in Australia, for which the company completed a strong definitive feasibility study in May 2024 with production targeted for 2027.
Metals X Chairman Peter Gunzburg, who is set to join First Tin’s board with Executive Director Brett Smith, commented the company is looking forward to working with First Tin, and that “the combination of Metals X’s operating and financial capabilities with First Tin’s exciting and late stage development assets should be of significant benefit to all stakeholders.”
Bill Scotting, First Tin’s CEO, highlighted the benefits in accelerating the optimisation and delivery of the company’s projects and said the company is “pleased to receive Metals X’s endorsement of our tin assets”.
Our view: ITA is pleased to see greater investment in new mined tin supply and collaboration within the tin industry at a time when tin demand is expected to rapidly outpace supply by 2030.
First Tin is a member of ITA’s Explorers & Developers Group.
