Grant Funding Investment at South Crofty Tin Project

Cornish Metals Inc. (CUSN) announced it has received a grant of up to £4.19 million from the Cornwall and Isles of Scilly Good Growth Programme, equivalent to a maximum of 62% of the £6.8 million Bartles Foundry project cost. The funding will support the construction of workshops, stores, and offices at the South Crofty tin project, facilitating the transition to the underground development phase and providing local employment; this follows investment from the UK's National Wealth Fund earlier this year, highlighting strong local and national support for the project.

Analysis

Cornish Metals Inc. (CUSN) has secured significant grant funding of up to £4.19 million from the Cornwall and Isles of Scilly Good Growth Programme, managed by Cornwall Council and funded by the UK Government's Shared Prosperity Fund. This grant covers a substantial portion, up to 62%, of the estimated £6.8 million total cost for the Bartles Foundry project, which is integral to advancing CUSN's 100% owned and permitted South Crofty tin project towards production. The funds are earmarked for constructing essential workshops, stores, and offices on the Bartles Foundry site, which includes 4.5 acres of land recently purchased from Cornwall Council, and will support the transition to the underground development phase. This development, which received conditional planning approval in January 2025 and follows a positive SPF-funded site suitability study in 2024, signifies strong ongoing local and national backing, evidenced by previous investment from the UK’s National Wealth Fund earlier in the year. The South Crofty project is strategically important as a historical, high-grade tin mine with existing infrastructure, permitted operations until 2071, and the potential to be the sole primary tin producer in Europe or North America. Tin's designation as a critical mineral by the UK, US, and Canadian governments, coupled with current supply chain concentrations in Asia, underscores the project's relevance for domestic mineral security and its potential to generate up to 320 direct jobs, further reinforcing the support it has garnered.

Key Decisions for Investors

• Investors should view this grant funding as a positive de-risking event that materially advances the South Crofty project's infrastructure development and improves its capital structure for the upcoming underground development phase.
• Consider the heightened strategic value of Cornish Metals, given the confirmed governmental support and the project's unique position to supply tin, a critical mineral, within Europe and North America, potentially attracting further strategic interest.
• Monitor key upcoming milestones, including the commencement and progress of the Bartles Foundry construction and subsequent updates on the underground development timeline, while also considering the project's 2024 Preliminary Economic Assessment in light of this new funding.
• Evaluate the long-term potential stemming from strong local and national backing, which can facilitate smoother permitting and operational transitions, potentially leading to a more stable investment outlook.