Cornish Metals Inc. (
TSX-V/AIM:
CUSN) (“Cornish Metals” or the “Company”), a mineral
exploration and development company focused on its projects 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 three months ended
April 30, 2023. The reports are available under the Company’s
profile on SEDAR (www.sedar.com) and on the Company’s website
(www.cornishmetals.com).
Highlights for the three months ended
April 30, 2023 and for the period ending June 21, 2023
(All figures expressed in Canadian dollars
unless otherwise stated)
-
Drill program nearing completion at South Crofty to collect samples
for metallurgical testwork as part of the Feasibility Study, with
drilling expected to be finished by the end of June 2023;
-
Construction of the water treatment plant (“WTP”) substantially
complete with commencement of dewatering expected later in summer
2023 at a construction cost estimated to be between £6.5 million
and £7.0 million ($11.1 million and $11.9 million at quarter end
exchange rate);
-
First submersible pump currently being installed in New Cook
Kitchen’s (“NCK”) shaft with the second pump expected to commence
installation by the end of June 2023;
-
Two single drum winders have been ordered for the shaft re-access
work, with the main winder due on site in October 2023 and the
emergency winder due for delivery in August 2023;
-
Remedial work underway on the south headframe above NCK shaft in
readiness for the installation of the main winder;
-
Work on the Feasibility Study continues with completion planned by
the end of 2024; and
- Further
digitization of historic assay information and data from the
metallurgical drilling program is being incorporated into an
updated Mineral Resource Estimate with a targeted release date for
the end of September 2023;
Richard Williams, CEO of Cornish Metals,
stated, “It is just over a year since the £40.5m financing
led by Vision Blue Resources completed, and we are pleased with the
excellent progress that has been made during this time. Dewatering
of the mine is on track for commencing later this summer and other
aspects of the project are well underway.
“With the completion of the metallurgical drill
programme this month, we look forward to continuing the exploration
programme of the Wide Formation at Carn Brea in the coming weeks to
demonstrate the Mineral Resource potential of this target.”
Financial highlights for the three
months ended April 30, 2023 and April 30, 2022
|
Three months ended (unaudited) |
|
April 30, 2023 |
April 30, 2022 |
(Expressed in Canadian dollars) |
|
|
Total operating expenses |
$924,120 |
$627,115 |
Loss for the period |
$206,802 |
$979,427 |
Net cash used in operating activities |
$1,030,901 |
$625,384 |
Net cash used in investing activities |
$7,027,003 |
$1,184,673 |
Net cash used in financing activities |
$723 |
$555,449 |
Cash at end of the period |
$49,078,875 |
$4,286,535 |
- 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;
- Expenditure of
$3.4 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 $3.4 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;
- Interest income
of $388,384 arising from increased interest rates being received on
higher cash balance following the Offering; and
- Recognition of
foreign currency translation gain of $3.0 million for those assets
located in the UK when translated into Canadian dollars for
presentational purposes.
Construction progress of water treatment plant at South
Crofty
- Construction
progress of the WTP at South Crofty has included various enabling
works, including completion of the treated water discharge duct
from the WTP and the concrete foundation pad for the WTP itself.
The pipelines carrying water from the submersible pumps in NCK
shaft to the WTP are also complete;
- The WTP
comprises nine reaction tanks for increasing and decreasing the pH
to precipitate the various metals in solution, and six inclined
plate settling tanks (lamella clarifiers) to remove the
precipitated solids. All the tanks and clarifiers have been
installed, as have the structural steel supports and walkways which
provide access to the WTP;
- The installation
of mechanical, electrical and instrumentation equipment is expected
to be completed in the first half of August 2023. Reagent storage,
make-up and dosing equipment have been supplied as complete
packages from specialist manufacturers;
- The building
housing the high voltage power supply/sub-station and the variable
speed drives required to operate the pumps is complete, and the
11kV power supply is scheduled to be in place by the end of June
2023. A turbine will be added ahead of the discharge point that
will generate up to 15% of the electricity required to operate the
WTP;
- Wet
commissioning of the WTP is expected to commence in August 2023,
with commencement of mine dewatering expected shortly thereafter;
and
- Overall, the
cost of construction for the WTP is expected to be between £6.5
million and £7.0 million ($11.1 million and $11.9 million at
quarter end exchange rate).
Outlook
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. The planned use of the proceeds from the Offering
is to complete the dewatering program and Feasibility Study at
South Crofty, evaluate downstream beneficiation opportunities and
commence potential early works on-site in advance of a potential
construction decision.
Within 30 months from the closing of the
Offering, the Company’s plans are as follows:
- Construct WTP
and commence dewatering during summer 2023 and thereafter complete
the dewatering of the mine within 18 months;
- Complete a drill
program for metallurgical studies and to produce an updated JORC
(2012) compliant Mineral Resource estimate for a Feasibility
Study;
- Complete a
Feasibility Study using all reasonable commercial efforts by the
end of 2024; and
- Commence basic
and detailed engineering studies, construction of the processing
plant, refurbishment of underground facilities and other on-site
early works.
A follow up drill program is also being planned
to determine the continuity of mineralization and to better define
the geometry and extent of the Wide Formation at Carn Brea. This
follow-up program is expected to commence at the beginning of July
2023, as soon as the metallurgical drill program as described above
is completed.
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
near-surface, high potential, exploration targets within transport
distance of the planned processing plant site at South Crofty.
ABOUT CORNISH METALS
Cornish Metals completed the acquisition of the
South Crofty tin and United Downs copper / tin projects, plus
additional mineral rights located in Cornwall, UK, in July 2016
(see Company news release dated July 12, 2016). The additional
mineral rights cover an area of approximately 15,000 hectares and
are distributed throughout Cornwall. Some of these mineral rights
cover old mines that were historically worked for copper, tin,
zinc, and tungsten.
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 mineralisation 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.
For additional information please contact:
In North America:
Irene Dorsman at (604) 200 6664 or by e-mail at
irene@cornishmetals.com
In the UK:
SP Angel Corporate Finance LLP |
Tel: |
+44 203 470 0470 |
(Nominated Adviser & Joint Broker) |
|
|
|
Richard Morrison |
|
|
Charlie Bouverat |
|
|
Grant Barker |
|
|
|
|
Hannam & Partners |
Tel: |
+44 207 907 8500 |
(Joint Broker) |
|
|
|
Matthew Hasson |
|
|
Andrew Chubb |
|
|
Jay Ashfield |
|
|
|
|
BlytheRay |
Tel: |
+44 207 138 3204 |
(Financial PR/IR-London) |
|
|
|
Tim Blythe |
tim.blythe@blytheray.com |
|
Megan Ray |
megan.ray@blytheray.com |
ON BEHALF OF THE BOARD OF
DIRECTORS
“Richard D. Williams”Richard D. Williams,
P.Geo
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)
|
April 30, 2023 |
|
January 31, 2023 |
|
|
|
|
ASSETS |
|
|
Current |
|
|
Cash |
$ |
49,078,875 |
|
$ |
55,495,232 |
|
Marketable securities |
|
2,774,121 |
|
|
2,718,936 |
|
Receivables |
|
1,184,781 |
|
|
656,407 |
|
Prepaid expenses |
|
552,251 |
|
|
371,977 |
|
|
|
53,590,028 |
|
|
59,242,552 |
|
|
|
|
|
|
|
|
Deposits |
|
85,554 |
|
|
54,165 |
|
Property, plant and
equipment |
|
13,452,835 |
|
|
9,721,352 |
|
Exploration and
evaluation assets |
|
38,418,329 |
|
|
33,088,129 |
|
|
|
|
|
|
|
|
|
$ |
105,546,746 |
|
$ |
102,106,198 |
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
Current |
|
|
Accounts payable and accrued liabilities |
$ |
3,022,646 |
|
$ |
2,494,642 |
|
Lease liability |
|
- |
|
|
642 |
|
|
|
3,022,646 |
|
|
2,495,284 |
|
NSR
liability |
|
9,306,070 |
|
|
9,149,804 |
|
|
|
12,328,716 |
|
|
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 |
|
384,758 |
|
|
384,758 |
|
Foreign currency translation reserve |
|
2,314,760 |
|
|
(648,962 |
) |
Deficit |
|
(39,883,805 |
) |
|
(39,677,003 |
) |
|
|
|
|
|
|
|
|
|
93,218,030 |
|
|
90,461,110 |
|
|
|
|
|
|
|
|
|
$ |
105,546,746 |
|
$ |
102,106,198 |
|
CONSOLIDATED CONDENSED INTERIM STATEMENTS OF LOSS AND
COMPREHENSIVE LOSS
(Unaudited) (Expressed in Canadian dollars)
|
Three months ended |
|
April 30, 2023 |
|
April 30, 2022 |
|
|
|
|
EXPENSES |
|
|
Travel and marketing |
$ |
89,590 |
|
$ |
110,878 |
|
Depreciation |
|
- |
|
|
443 |
|
Insurance |
|
172,430 |
|
|
33,509 |
|
Office, miscellaneous and rent |
|
51,613 |
|
|
28,978 |
|
Professional fees |
|
200,735 |
|
|
169,597 |
|
Generative exploration costs |
|
2,607 |
|
|
333 |
|
Regulatory and filing fees |
|
33,274 |
|
|
21,244 |
|
Salaries, directors’ fees and benefits |
|
373,871 |
|
|
262,133 |
|
|
|
|
|
|
|
|
Total operating expenses |
|
(924,120 |
) |
|
(627,115 |
) |
|
|
|
Interest income |
|
388,384 |
|
|
743 |
|
Foreign exchange gain (loss) |
|
370,892 |
|
|
(353,055 |
) |
Unrealized loss on marketable securities |
|
(41,958 |
) |
|
- |
|
|
|
|
|
|
|
|
Loss for the period |
|
(206,802 |
) |
|
(979,427 |
) |
|
|
|
Foreign currency translation |
|
2,963,722 |
|
|
(1,152,758 |
) |
Total comprehensive income (loss) for the
period |
$ |
2,756,920 |
|
$ |
(2,132,185 |
) |
|
|
|
Basic and diluted income (loss) per share |
$ |
0.01 |
|
$ |
(0.01 |
) |
|
|
|
Weighted average number of common shares
outstanding: |
|
535,265,094 |
|
|
285,850,157 |
|
CONSOLIDATED CONDENSED INTERIM
STATEMENTS OF CASH
FLOWS
(Unaudited) (Expressed in Canadian dollars)
|
For the three months ended |
|
April 30, 2023 |
|
April 30, 2022 |
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
Loss for the period |
$ |
(206,802 |
) |
$ |
(979,427 |
) |
Items not involving cash: |
|
|
Depreciation |
|
- |
|
|
443 |
|
Unrealized loss on marketable securities |
|
41,958 |
|
|
- |
|
Foreign exchange loss (gain) |
|
(370,892 |
) |
|
353,055 |
|
|
|
|
Changes in non-cash working capital items: |
|
|
Increase in receivables |
|
(528,374 |
) |
|
(33,218 |
) |
Increase in prepaid expenses |
|
(167,194 |
) |
|
(28,727 |
) |
Increase in accounts payable and accrued liabilities |
|
200,403 |
|
|
62,490 |
|
|
|
|
|
|
|
|
Net cash used in operating activities |
|
(1,030,901 |
) |
|
(625,384 |
) |
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
Acquisition of property, plant and equipment |
|
(3,179,655 |
) |
|
(2,661 |
) |
Acquisition of exploration and evaluation assets |
|
(3,818,598 |
) |
|
(1,171,500 |
) |
Increase in deposits |
|
(28,750 |
) |
|
(10,512 |
) |
|
|
|
|
|
|
|
Net cash used in investing activities |
|
(7,027,003 |
) |
|
(1,184,673 |
) |
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
Proceeds from fundraising received in advance of share issue |
|
- |
|
|
30,000 |
|
Increase in deferred financing fees |
|
- |
|
|
(584,359 |
) |
Lease payments |
|
(723 |
) |
|
(1,090 |
) |
|
|
|
|
|
|
|
Net cash used in financing activities |
|
(723 |
) |
|
(555,449 |
) |
|
|
|
|
|
|
|
Impact of foreign exchange on cash |
|
1,642,270 |
|
|
(270,663 |
) |
|
|
|
|
|
|
|
Change in cash during the period |
|
(6,416,357 |
) |
|
(2,636,169 |
) |
Cash, beginning of the period |
|
55,495,232 |
|
|
6,922,704 |
|
|
|
|
|
|
|
|
Cash, end of the period |
$ |
49,078,875 |
|
$ |
4,286,535 |
|
|
|
|
Cash paid during the period for interest |
$ |
- |
|
$ |
- |
|
|
|
|
Cash paid during the period for income taxes |
$ |
- |
|
$ |
- |
|
CONSOLIDATED CONDENSED INTERIM
STATEMENTS OF CHANGES IN SHAREHOLDERS’
EQUITY
(Unaudited) (Expressed in Canadian dollars)
|
Number ofshares |
Amount |
Sharesubscriptionsreceived inadvance |
Capitalcontribution |
Share-basedpaymentreserve |
Foreigncurrencytranslationreserve |
Deficit |
Total |
Balance at January 31, 2022 |
285,850,157 |
$ |
56,846,350 |
$ |
- |
|
$ |
2,007,665 |
$ |
630,265 |
$ |
(174,123 |
) |
$ |
(38,599,036 |
) |
$ |
20,711,121 |
|
Commitment to issue sharespursuant to fundraise |
- |
|
- |
|
30,000 |
|
|
- |
|
- |
|
- |
|
|
- |
|
|
30,000 |
|
Foreign currency translation |
- |
|
- |
|
- |
|
|
- |
|
- |
|
(1,152,758 |
) |
|
- |
|
|
(1,152,758 |
) |
Loss for the period |
- |
|
- |
|
- |
|
|
- |
|
- |
|
- |
|
|
(979,427 |
) |
|
(979,427 |
) |
Balance at April 30, 2022 |
285,850,157 |
$ |
56,846,350 |
$ |
30,000 |
|
$ |
2,007,665 |
$ |
630,265 |
$ |
(1,326,881 |
) |
$ |
(39,578,463 |
) |
$ |
18,608,936 |
|
|
|
|
|
|
|
|
|
|
Balance at January 31, 2023 |
535,020,712 |
$ |
128,377,152 |
$ |
17,500 |
|
$ |
2,007,665 |
$ |
384,758 |
$ |
(648,962 |
) |
$ |
(39,677,003 |
) |
$ |
90,461,110 |
|
Warrant exercise |
250,000 |
|
17,500 |
|
(17,500 |
) |
|
- |
|
- |
|
- |
|
|
- |
|
|
- |
|
Foreign currency translation |
- |
|
- |
|
- |
|
|
- |
|
- |
|
2,963,722 |
|
|
- |
|
|
2,963,722 |
|
Loss for the period |
- |
|
- |
|
- |
|
|
- |
|
- |
|
- |
|
|
(206,802 |
) |
|
(206,802 |
) |
Balance at April 30, 2023 |
535,270,712 |
$ |
128,394,652 |
$ |
- |
|
$ |
2,007,665 |
$ |
384,758 |
$ |
2,314,760 |
|
$ |
(39,883,805 |
) |
$ |
93,218,030 |
|
Cornish Metals (TSXV:CUSN)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
Cornish Metals (TSXV:CUSN)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024