TIDMCUSN
RNS Number : 7180W
Cornish Metals Inc.
14 December 2023
CORNISH METALS RELEASES UNAUDITED FINANCIAL STATEMENTS AND
MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE NINE MONTHSED 31
OCTOBER 2023
Vancouver, December 13, 2023
Cornish Metals Inc. (TSX-V/AIM: CUSN) ("Cornish Metals" or the
"Company"), a mineral exploration and development company focused
on advancing the South Crofty tin project to a production decision,
located in Cornwall, United Kingdom, is pleased to announce that it
has released its unaudited financial statements and management,
discussion and analysis ("MD&A") for the nine months ended
October 31, 2023. The reports are available under the Company's
profile on SEDAR+ ( www.sedarplus.ca ) and on the Company's website
( www.cornishmetals.com ).
Highlights for the nine months ended October 31, 2023 and for
the period ending December 13, 2023
(All figures expressed in Canadian dollars unless otherwise
stated)
-- Commissioning of the water treatment plant ("WTP") completed
at the end of October 2023 with discharge of treated water to the
Red River commencing shortly thereafter in accordance with
permitted standards (news release dated October 25, 2023 );
-- Good progress is being made on the mine dewatering with the
water level falling faster than expected in the first month of
dewatering (news release dated December 6, 2023 );
-- Updated Mineral Resource Estimate ("MRE") for South Crofty
mine released in September 2023 showing a 31.6% increase to
contained tin in the Indicated Mineral Resource category for the
Lower Mine (news release dated September 13, 2023 ) ;
-- Drill program to collect samples for metallurgical testwork
as part of the South Crofty Feasibility Study completed in June
2023 with assay results reported ( news release dated July 3, 2023
);
-- Ore sorting testwork completed with excellent results: 55%
mass rejection with less than 3% metal loss (XRT: -50mm to +15mm
size fraction) and 50% mass rejection with less than 5% metal loss
(HLS: -15mm to +0.85mm size fraction) (news release dated October
8, 2023 );
-- Metallurgical testwork results confirm the potential to
upgrade the mineralization of the South Crofty mine and enable
process design optimization work on the size of the mineral
processing plant (news release dated October 8, 2023 ) ;
-- Two submersible pumps installed in New Cook's Kitchen ("NCK")
shaft with the pumps and variable speed drives successfully
commissioned in July 2023 (news releases dated June 26, 2023 and
July 18, 2023 );
-- Fifteen-month power supply contract agreed for the provision
of 100% renewably generated power thereby providing certainty over
power costs during the mine dewatering phase (news release dated
July 18, 2023 );
-- Two single drum winders for the shaft re-access delivered to
site by early November 2023 with their installation underway;
-- Remedial work underway on the south headframe above NCK shaft
and the winder building in readiness for the installation of the
main winder;
-- Work on the Feasibility Study continues and is well underway, and
-- Commencement of follow-up exploration drill program at the
Wide Formation target in the Carn Brea exploration area (news
release dated September 19, 2023 ).
Richard Williams, CEO of Cornish Metals, stated, "Looking back
on 2023, I want to commend the Cornish Metals team for the
outstanding progress that has been achieved at South Crofty with
some very important milestones being met, in particular, the
commissioning of the water treatment plant and the subsequent
commencement of mine dewatering that is tracking ahead of
expectations. This progress would not have been achieved without
the support of suppliers, the community and other local
stakeholders.
Looking ahead to 2024, we can look forward to another busy year.
The continuation of dewatering at deeper levels will allow access
to the mine for the first time in over 25 years. We remain focussed
on our objective to complete the dewatering of South Crofty within
18 months from commencement.
The expected completion of the Feasibility Study will move South
Crofty a stage further towards a construction decision. I also look
forward to reporting on the results of the drill program at the
Wide Formation which, if successful, will benefit the economics of
South Crofty with the potential to increase production and extend
the mine life.
The financial position of the Company remains healthy and we
appreciate the continuing support and advice from our major
shareholder, Vision Blue Resources."
Financial highlights for the nine months ended October 31, 2023
and October 31, 2022
Nine months ended (unaudited)
October 31, October 31,
2023 2022
---------------- --------------
(Expressed in Canadian dollars)
---------------- --------------
Total operating expenses $3,281,200 $2,616,299
---------------- --------------
Loss for the period $1,571,831 $3,557,556
---------------- --------------
Net cash (used in) operating activities $(1,761,034) $(3,047,818)
---------------- --------------
Net cash (used in) investing activities $(23,335,112) $(5,760,776)
---------------- --------------
Net cash provided by (used in)
financing activities $(723) $61,456,627
---------------- --------------
Cash at end of the period $31,579,386 $57,840,129
---------------- --------------
-- Increase in operating costs impacted by higher insurance
costs attributable to more site-based activities primarily relating
to the construction of the WTP and related dewatering work;
-- Interest income of $1.5 million arising from increased
interest rates being received on higher cash balance following the
Offering;
-- Expenditure of $12.4 million incurred during the period on
the construction of the WTP and related dewatering equipment, as
well as new or replacement equipment for the mine;
-- Other project related costs of $8.4 million incurred during
the period relating to the advancement of South Crofty to a
potential construction decision, primarily for the metallurgical
drill program and planning activities for dewatering and shaft
re-access;
-- Costs of $0.8 million incurred for the continuation of the
exploration program at Carn Brea which re-commenced in June 2023;
and
-- Recognition of foreign currency translation gain of $1.6
million for those assets located in the UK when translated into
Canadian dollars for presentational purposes .
Outlook
As described above, the proceeds raised from the Offering
completed in May 2022 are being used to advance the South Crofty
tin project to a potential construction decision within 30 months
from closing of the Offering.
Within 30 months from the closing of the Offering, the Company's
objectives are as follows:
-- Commence dewatering of the mine and thereafter complete the
dewatering of the mine within 18 months;
-- Complete a Feasibility Study using all reasonable commercial efforts; and
-- Commence basic and detailed engineering studies, construction
of the processing plant, refurbishment of underground facilities
and other on-site early works.
The follow up exploration drill program at the Wide Formation
target at Carn Brea South will also continue subject to the receipt
of satisfactory drill results.
Subject to the availability of financing, consideration will
also be given to continuing with the Company's exploration program
at United Downs and evaluating other high potential, exploration
targets within transport distance of the planned processing plant
site at South Crofty .
ABOUT CORNISH METALS
Cornish Metals is a dual-listed company (AIM and TSX-V: CUSN)
focused on advancing the South Crofty high-grade, underground tin
Project through to a construction decision, as well as exploring
its additional mineral rights, all located in Cornwall, United
Kingdom.
-- South Crofty is a historical, high-grade, underground tin
mine that started production in 1592 and continued operating until
1998 following over 400 years of continuous production;
-- The Project possesses Planning Permission for underground
mining (valid to 2071), to construct new processing facilities and
all necessary site infrastructure, and an Environmental Permit to
dewater the mine;
-- South Crofty has the 4(th) highest grade tin Mineral Resource
globally and benefits from existing mine infrastructure including
multiple shafts that can be used for future operations;
-- Tin is a Critical Mineral as defined by the UK, USA, and
Canadian governments, with approximately two-thirds of the tin
mined today coming from China, Myanmar and Indonesia;
-- There is no primary tin production in Europe or North America;
-- Tin is an enabler of the energy transition - responsible
sourcing of critical minerals and security of supply are key
factors in the energy transition and technology growth;
-- South Crofty benefits from strong local community and
regional and national government support.
-- Cornish Metals has a growing team of skilled people, local to
Cornwall, and the Project could generate 250 - 300 direct jobs.
An updated Mineral Resource was completed in September 2023 with
a 39% increase in tonnes and 32% increase in contained tin in the
Indicated category for the Lower Mine (see news release dated
September 13, 2023 ) as summarised below:
South Crofty Summary (JORC 2012) Mineral Resource Estimate
Area Classification Mass Grade Contained Tin
(kt) /
Tin Equivalent
(kt)
---------------- ------ ----------- ----------------
Lower Mine Indicated 2,896 1.50% Sn 43.6
---------------- ------ ----------- ----------------
Inferred 2,626 1.42% Sn 37.4
----------------------------- ------ ----------- ----------------
Upper Mine Indicated 260 0.99% SnEq 2.6
---------------- ------ ----------- ----------------
Inferred 465 0.91% SnEq 4.2
----------------------------- ------ ----------- ----------------
The Mineral Resource Estimate for South Crofty is available in a
report titled " South Crofty Tin Project - Mineral Resource Update
NI 43-101 Technical Report ", dated October 27, 2023, co-authored
by Mr. N. Szebor (MCSM, MSc, BSc, CGeol, EurGeol, FGS) and Mr. R.
Chesher (FAusIMM(CP), RPEQ, MTMS) of AMC Consultants, and can be
accessed through the above link and on the Company's SEDAR+
page.
TECHNICAL INFORMATION
The technical information in this news release has been compiled
by Mr. Owen Mihalop. Mr. Mihalop has reviewed and takes
responsibility for the data and geological interpretation. Mr. Owen
Mihalop (MCSM, BSc (Hons), MSc, FGS, MIMMM, CEng) is Chief
Operating Officer for Cornish Metals Inc. and has sufficient
experience relevant to the style of mineralization and type of
deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined under the
JORC Code (2012) and as a Qualified Person under NI 43-101. Mr.
Mihalop consents to the inclusion in this announcement of the
matters based on his information in the form and context in which
it appears.
ON BEHALF OF THE BOARD OF DIRECTORS
"Richard D. Williams"
Richard D. Williams, P.Geo
For additional information please contact:
Cornish Metals Fawzi Hanano investors@cornishmetals.com
Irene Dorsman info@cornishmetals.com
Tel: + 1 (604) 200 6664
SP Angel Corporate Finance Richard Morrison Tel: +44 203 470 0470
LLP Charlie Bouverat
(Nominated Adviser & Joint Grant Barker
Broker)
Hannam & Partners Matthew Hasson cornish@hannam.partners
(Joint Broker) Andrew Chubb Tel: +44 207 907 8500
Jay Ashfield
BlytheRay Tim Blythe tim.blythe@blytheray.com
(Financial PR) Megan Ray megan.ray@blytheray.com
Tel: +44 207 138 3204
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Caution regarding forward looking statements
This news release contains "forward-looking statements"
including, but not limited to, statements in connection with the
expected use of proceeds of the Offering, including in respect of
certain work programs, expected construction, including in respect
of the WTP, and the potential completion of a Feasibility Study on
the South Crofty mine and the timing thereof, the exploration
program at United Downs and other exploration opportunities
surrounding the South Crofty tin project, expected recruitment of
various personnel, and expectations respecting tin pricing and
other economic factors. Forward-looking statements, while based on
management's best estimates and assumptions at the time such
statements are made, are subject to risks and uncertainties that
may cause actual results to be materially different from those
expressed or implied by such forward-looking statements, including
but not limited to: risks related to receipt of regulatory
approvals, risks related to general economic and market conditions;
risks related to the COVID-19 global pandemic and any variants of
COVID-19 which may arise; risks related to the availability of
financing when required and on terms acceptable to the Company and
the potential consequences if the Company fails to obtain any such
financing, such as a potential disruption of the Company's
exploration program(s); the timing and content of upcoming work
programs; actual results of proposed exploration activities;
possible variations in Mineral Resources or grade; failure of
plant, equipment or processes to operate as anticipated; accidents,
labour disputes, title disputes, claims and limitations on
insurance coverage and other risks of the mining industry; changes
in national and local government regulation of mining operations,
tax rules and regulations.
Although Cornish Metals has attempted to identify important
factors that could cause actual results to differ materially from
those contained in forward-looking statements, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove
to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements. Cornish Metals undertakes no obligation or
responsibility to update forward-looking statements, except as
required by law.
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by
the Company to constitute inside information pursuant to Article 7
of EU Regulation 596/2014 as it forms part of UK domestic law by
virtue of the European Union (Withdrawal) Act 2018 as amended.
CONSOLIDATED CONDENSED INTERIM STATEMENTS OF FINANCIAL
POSITION
(Unaudited)
(Expressed in Canadian dollars)
October 31, January 31,
2023 2023
------------------------------------------ -------------- --------------
ASSETS
Current
Cash $31,579,386 $55,495,232
Marketable securities 2,636,751 2,718,936
Receivables 1,004,604 656,407
Prepaid expenses 314,331 371,977
35,535,072 59,242,552
Deposits 84,600 54,165
Property, plant and equipment 22,209,962 9,721,352
Exploration and evaluation assets 44,966,254 33,088,129
$102,795,888 $102,106,198
========================================== ============== ==============
LIABILITIES
Current
Accounts payable and accrued liabilities $ 2,573,144 $ 2,494,642
Lease liability - 642
2,573,144 2,495,284
NSR liability 9,506,886 9,149,804
12,080,030 11,645,088
SHAREHOLDERS' EQUITY
Capital stock 128,394,652 128,377,152
Share subscriptions received in advance - 17,500
Capital contribution 2,007,665 2,007,665
Share-based payment reserve 592,272 384,758
Foreign currency translation reserve 970,103 (648,962)
Deficit (41,248,834) (39,677,003)
90,715,858 90,461,110
$102,795,888 $102,106,198
========================================== ============== ==============
CONSOLIDATED CONDENSED INTERIM STATEMENTS OF LOSS AND
COMPREHENSIVE LOSS
(Unaudited)
(Expressed in Canadian dollars)
Nine months ended
October October
31, 2023 31, 2022
--------------------------------- ------------- --------------
EXPENSES
Travel and marketing $488,797 $ 399,321
Depreciation - 443
Insurance 511,899 99,295
Office, miscellaneous and
rent 148,925 74,615
Professional fees 794,167 500,737
Generative exploration expense 5,433 96,108
Regulatory and filing fees 73,171 144,468
Share-based compensation 130,136 -
Salaries, directors' fees
and benefits 1,128,672 1,301,312
Total operating expenses (3,281,200) (2,616,299)
Interest income 1,456,697 136,216
Foreign exchange gain (loss) 394,980 (1,907,824)
Gain on the disposal of royalty - 318,147
Unrealized gain (loss) on
marketable
securities (147,296) 512,204
Loss before income taxes (1,576,819) (3,557,556)
Income tax recovery 4,988 -
Loss for the period (1,571,831) (3,557,556)
Foreign currency translation 1,619,065 (2,365,115)
Total comprehensive income
(loss) for the period $ 47,234 $ (5,922,671)
====================================== ============= ==============
Basic and diluted income (loss)
per share $ 0.00 $ (0.01)
Weighted average number of
common shares outstanding: 535,268,881 430,111,396
====================================== ============= ==============
CONSOLIDATED CONDENSED INTERIM STATEMENTS OF CASH FLOWS
(Unaudited)
(Expressed in Canadian dollars)
For the Nine months
ended
October October
31, 2023 31, 2022
----------------------------------------------------- --------------- --------------
CASH FLOWS FROM OPERATING ACTIVITIES
Loss for the period $ (1,571,831) $ (3,557,556)
Items not involving cash:
Depreciation - 443
Share-based compensation 130,136 -
Gain on the disposal of royalty - (318,147)
Unrealized loss (gain) on marketable securities 147,296 (512,204)
Foreign exchange loss (gain) (394,980) 1,907,824
Income tax recovery (4,988) -
Income taxes paid (11,012) -
Changes in non-cash working capital items:
Increase in receivables (348,196) (565,408)
Decrease in prepaid expenses 105,201 69,395
Increase (decrease) in accounts payable and accrued
liabilities 187,340 (72,165)
Net cash used in operating activities (1,761,034) (3,047,818)
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property, plant and equipment (11,817,289) (1,569,968)
Acquisition of exploration and evaluation assets (11,489,073) (4,181,597)
Increase in deposits (28,750) (9,211)
Net cash used in investing activities (23,335,112) (5,760,776)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the Offering - 65,135,746
Proceeds from option and warrant exercises - 227,000
Share issue costs - (3,966,076)
Proceeds from the disposal of royalty - 63,147
Lease payments (723) (3,190)
Net cash provided by (used in) financing activities (723) 61,456,627
Impact of foreign exchange on cash 1,181,023 (1,730,608)
Change in cash during the period (23,915,846) 50,917,425
Cash, beginning of the period 55,495,232 6,922,704
Cash, end of the period $ 31,579,386 $ 57,840,129
===================================================== =============== ==============
Cash paid during the period for interest $- $ -
===================================================== =============== ==============
Cash paid during the period for income taxes $11,012 $-
===================================================== =============== ==============
CONSOLIDATED CONDENSED INTERIM STATEMENTS OF CHANGES IN
SHAREHOLDERS' EQUITY
(Unaudited)
(Expressed in Canadian dollars)
Share Foreign
Capital stock subscriptions Share-based currency
----------------------------
Number received
of in Capital payment translation Shareholders'
equity
shares Amount advance contribution reserve reserve Deficit - total
--------------- ------------ -------------- -------------- ------------- ------------ ------------- --------------- --------------
Balance at
January $ ( 38,599,036
31, 2022 285,850,157 $ 56,846,350 $ - $2,007,665 $630,265 $(174,123) ) $ 20,711,121
Share
issuance
pursuant to
the
Offering 225,000,000 65,135,746 - - - - - 65,135,746
Share issue
costs - (3,966,076) - - - - - (3,966,076)
Warrant
exercises 900,000 87,000 25,000 - - - - 112,000
Option
exercises 575,000 115,000 - - - - - 115,000
Shares issued
pursuant
to property
option
agreement 20,298,333 9,844,692 - - - - - 9,844,692
Foreign
currency
translation - - - - - (2,365,115) - (2,365,115)
Loss for the ( 3,557,556
period - - - - - - (3,557,556) )
--------------- ------------ -------------- -------------- ------------- ------------ ------------- --------------- --------------
Balance at
October
31, 2022 532,623,490 $128 ,062,712 $ 25,000 $2,007,665 $630,265 $(2,539,238) $ (42,156,592) $ 86,029,812
--------------- ------------ -------------- -------------- ------------- ------------ ------------- --------------- --------------
Balance at
January $ ( 39,677,003
31, 2023 535,020,712 $128,377,152 $17,500 $2,007,665 $384,758 $(648,962) ) $ 90,461,110
Warrant
exercises 250,000 17,500 (17,500) - - - - -
Foreign
currency
translation - - - - - 1,619,065 - 1,619,065
Share-based
compensation - - - - 207,514 - - 207,514
Loss for the ( 1,571,831
period - - - - - - (1,571,831) )
--------------- ------------ -------------- -------------- ------------- ------------ ------------- --------------- --------------
Balance at
October
31, 2023 535,270,712 $128 ,394,652 $- $2,007,665 $592,272 $ 970,103 $ (41,248,834) $ 90,715,858
=============== ============ ============== ============== ============= ============ ============= =============== ==============
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END
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(END) Dow Jones Newswires
December 14, 2023 02:00 ET (07:00 GMT)
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