The UK’s National Wealth Fund, wholly owned by HM Treasury, has committed to invest at least £25 million in South Crofty mine developer Cornish Metals.

As a part of successful fundraising of a minimum of £56 million, Cornish Metals announced on Tuesday that the National Wealth Fund has committed to invest up to £28.75 million minus expenses, while major shareholder Vision Blue will make an investment of up to £18.28 million to maintain its 25.95% stake.

Cornish Metals CEO, Don Turvey, commented “We are very pleased to welcome NWF as a major shareholder in Cornish Metals and to lead this fundraise alongside Vision Blue, demonstrating support for the Company and our plans to bring tin mining back to Cornwall.”

Continuing, Mr Turvey highlighted that the financing will enable the company to maintain the “strong momentum” of the last couple of years, enabling the delivery of “crucial milestones expected in the coming year including the completion of mine dewatering and shaft refurbishment, the start of early project works, placing orders for long-lead items, and concluding the project finance process.”

The company has earmarked £13.3 million for mining-related works and dewatering, £17.2 million for early works and long-lead items, and £5.1 million for project engineering studies. Cornish Metals states the fundraising will bring South Crofty nearer to production and advance it towards a formal final investment decision.

The company has been focused on reopening the historic South Crofty mine in Cornwall, UK, which represents the highest grade tin resource not currently in production, and is set to be one of the first new supply projects to come online.

John Flint, CEO of the National Wealth Fund, commented “Critical minerals are not only an important driver of the UK’s transition to net zero, but also of the UK’s growth mission, providing opportunities to anchor important supply chains in the UK.”

At ITA’s Investing in Tin seminar in December 2024, speakers highlighted the importance of government-owned funds investing in critical minerals, with investments signaling government support for domestic mining projects and encouraging other market participants to invest.

Our view: ITA is delighted to see that the UK’s government-owned investment fund recognises the importance of tin and the urgency of the impending supply deficit, and has accordingly made a significant investment into a future producer. This follows a move in late 2024 by the US Department of Defense to offer a $19 million grant to secondary tin producer Nathan Trotter to expand their production capacity in the interest of reducing supply chain vulnerability.

ITA’s Investing in Tin seminar in December 2024 featured a presentation on the role of sovereign wealth funds in critical minerals. A summary of the event and all slides and recordings can be found on our website.

Cornish Metals Inc. is a member of ITA’s Explorers & Developers Group.