Cornwall’s historic South Crofty tin mine revival a step closer
England’s historic South Crofty tin mine could soon be back in production.
Vancouver-based Strongbow Exploration (TSX-V : SBW) owns South Crofty, the iconic former-producing copper and tin mine in Cornwall. The company plans to bring the mine back into production following a proposed dual listing on London's AIM market.
London-based law firm Fieldfisher has advised Strongbow on successfully closing a conditional synthetic offtake agreement with specialist mining private equity fund, Orion Mine Finance.
London-based law firm Fieldfisher has advised Strongbow on successfully closing a conditional so-called 'synthetic' offtake agreement with specialist mining private equity fund, Orion Mine Finance
Strongbow announced its offtake deal with US-headquartered Orion on October 17, marking another example of the use of non-traditional forms of financing in the mining sector.
The offtake agreement provides for the 5% sale to Orion over the next 10 years of tin production from South Crofty, through the delivery of London Metal Exchange (LME) tin warrants representing tin refined to LME-Approved Brands, rather than the physical tin itself.
The agreement is conditional on Orion making an equity investment of at least $3 million in Strongbow, as part of the company's planned AIM fundraising.
For Strongbow, the offtake agreement with Orion represents a further endorsement of the South Crofty project, allowing the company to work towards its AIM admission before the end of this year.
The company is preparing for the dewatering of the now flooded mine workings with a view to re-commencing tin production at South Crofty.
South Crofty, one of the highest grade tin resources globally, is well placed to deliver “clean tin” to end users seeking to secure supply that is conflict-free, does not exploit child labour, and does not have a negative environmental impact.
The project received a mining licence in 2013, which is valid until 2071, and planning permission to construct a new process plant in 2011.