Canadian mining firm Strongbow Exploration has announced plans to float on the London Stock Exchange raising further hopes of a mining revival in Cornwall.
The company is hoping to raise £25 million, primarily through a listing on London’s Alternative Investment Market (AIM), that will to help reopen the South Crofty tin mine in Cornwall.
The underground mine – which was acquired by Strongbow in July 2016 – has production records dating back to 1592 and was the last tin mine to close in the UK when it shuttered in 1998.
“Since then, the dynamics of the global tin industry have changed substantially and South Crofty has the potential to become an operating mine once again,” Strongbow said in its announcement.
“The development of South Crofty is Strongbow’s primary focus and the project is estimated to require the company to raise £25 million over the next 18 months to progress to a production decision.”
The first £25 million will help prepare the mine for re-opening, though it is understood that a further £110 million will be needed to begin operating the South Crofty site.
It is expected that the second round of funds will be raised through a mix of debt and equity as well as offtake agreements, where customers would agree to pay for their tin in advance.
The flotation on AIM would add to Strongbow’s current listing on the TSX Venture Exchange in Canada.
Strongbow chief executive Richard Williams said: “Strongbow has achieved a great deal since acquiring the South Crofty project in July 2016, and its planned admission to AIM, which is the next step in the company’s strategy, is a very exciting development.
“The company continues to advance South Crofty to a production decision, with a plan to re-commence production in 2021.”
He said the mining project had all the necessary permits in place and offers “great potential at a relatively low risk.”
“The global demand for tin, especially in consumer electronics, combined with current tin price forecasts, underpins Strongbow’s strategy,” Mr Williams added.
Last year, mining company Cornish Lithium raised £1 million in funding to help launch exploration activities in Cornwall, increasing the likelihood of a mining boost in the south west.