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    Cornish Metals Releases Unaudited Financial Statements and Management’s Discussion and Analysis for the Three Months Ended 31 March 2024

    VANCOUVER, British Columbia, May 22, 2024 (GLOBE NEWSWIRE) -- Cornish Metals Inc. (TSX-V/AIM: CUSN) (“Cornish Metals” or the “Company”), a mineral exploration and development company focused on its 100% owned and permitted South Crofty tin project 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 March 31, 2024. 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 three months ended March 31, 2024 and for the period ending May 22, 2024

    (All figures expressed in Canadian dollars unless otherwise stated)

    • South Crofty Preliminary Economic Assessment (“PEA”) completed, validating the South Crofty tin project’s economic viability (news release dated April 30, 2024):
      • After-tax Net Present Value (“NPV”) of US$201 million and Internal Rate of Return (“IRR”) of 29.8%;
      • Average annual tin production of over 4,700 tonnes for years two through six, totaling 49,310 tonnes over a 14-year Life of Mine;
      • Total after-tax cash flow of approximately US$626 million from start of production.
    • Purchase of land totaling 7.7 acres located immediately adjacent to South Crofty surface infrastructure (news release dated May 21, 2024):
      • The purchased land removes reliance on existing right-of-passage agreements, providing the Company with direct access to all surface infrastructure as well as additional space for future site works, opportunities for potential operating cost savings, renewable energy initiatives and improved overall property security.
    • Refurbishment of NCK shaft has commenced:
      • Rephasing shaft refurbishment will improve the functionality of New Cook’s Kitchen (“NCK”) shaft and enable larger equipment to access the mine at an earlier stage in its re-development (news release dated March 3, 2024);
      • Winders and cages are now installed, fully commissioned and certified to allow for safe transport of equipment and workers within NCK shaft.
    • Mine dewatering continues with the submersible pumps and Water Treatment Plant (“WTP”) operating to specifications:
      • Water level in NCK shaft is being maintained at approximately 280 meters below surface with the rate of dewatering being reduced to allow shaft refurbishment and dewatering to proceed concurrently;
      • Treated water being discharged to the Red River continues to exceed the standards permitted by the Environment Agency.
    • The Company announced the appointment of Ken Armstrong, a non-executive director, as Interim Chief Executive Officer (“CEO”) effective March 31, 2024, replacing Richard Williams, who also stepped down from the Company’s Board:
      • Patrick Anderson, Chairman of the Board, became the Executive Chairman of the Company for the transition period until a permanent CEO is appointed (news release dated March 15, 2024);
      • The process for the appointment of a permanent CEO has commenced with the assistance of an appointed executive search consultant.
    • Samantha Hoe-Richardson joined the Board as independent non-executive director effective January 8, 2024 (news release dated January 8, 2024).

    Ken Armstrong, Interim CEO and Director of Cornish Metals, stated, “The Cornish Metals team has recently accomplished an important milestone for the Company, completing a Preliminary Economic Assessment of the South Crofty project that confirms the Project’s potential to be a low-cost and long-life tin mining operation. The PEA results are compelling with a post-tax NPV8% of US$201 million and IRR of about 30%, representing a strong foundation for further evaluation of the Project and enabling the Company to move forward with additional preparation work and progress towards a construction decision.”

    Financial highlights for the three months ended March 31, 2024 and April 30, 2023

      Three months ended (unaudited)
      March 31, 2024 April 30, 2023
    (Expressed in Canadian dollars)    
    Total operating expenses 2,759,198 924,120
    Loss for the period 2,561,669 206,802
    Net cash used in operating activities 1,148,564 1,030,901
    Net cash used in investing activities 7,895,388 7,027,003
    Net cash used in financing activities 85,646 723
    Cash at end of the period 17,015,749 49,078,875


    • Increase in operating expenses impacted by higher travel and marketing expenditure arising from increased investor engagement and termination settlement payable to the former CEO;
    • Expenditure of $1.0 million on new or replacement equipment for the mine, including the final payments for the permanent pumps for the underground pump station, cages and the new winders;
    • Dewatering costs of $1.3 million for power, reagents, sludge disposal and maintenance of the WTP;
    • Other project related expenditure of $2.5 million relating to the advancement of South Crofty to a potential construction decision, primarily for the ongoing feasibility study and NCK shaft re-access;
    • Costs of $0.8 million incurred for the continuation of the exploration program at Carn Brea; and
    • Cash decreased by $9.1 million to $17.0 million at the period end mainly due to ongoing development activities at the South Crofty tin project.

    The Company changed its financial year end from January 31 to December 31 with effect from December 31, 2023 with the result that the current period of reporting is the three months ended March 31, 2024. The comparative period of reporting is the three months ended April 30, 2023.

    The Company has allocated funding for near term opportunities to progress the project, the most significant being the purchase of the land located immediately adjacent to South Crofty surface infrastructure. As a consequence of pursuing these opportunities, additional financing will be required before the end of 2024.

    Outlook

    The Company is advancing the South Crofty tin project to a potential construction decision. The Company’s objectives are as follows:

    • Dewater South Crofty mine and refurbish NCK shaft by September 2025;
    • Advancing all stages of the Feasibility Study;
    • Complete the 14-hole / 9,000 metre Wide Formation exploration drill programme, 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 programme at the Wide Formation target will also continue subject to the receipt of satisfactory drill results.

    ABOUT CORNISH METALS

    Cornish Metals is a dual-listed mineral exploration and development 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, 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 one of the highest grade tin Mineral Resources globally and benefits from existing mine infrastructure including multiple shafts that can be used for future operations;
    • The 2024 Preliminary Economic Assessment for South Crofty validates the Project’s potential (see news release dated April 30, 2024):
      • US$201 million after-tax NPV8% and 29.8% IRR
      • 3-year after-tax payback
      • 4,700 tonnes average annual tin production in years two through six
      • Life of mine all-in sustaining cost of US$13,700 /tonne of payable tin
      • Total after-tax cash flow of US$626 million from start of production
    • Tin is a Critical Mineral as defined by the UK, American, and Canadian governments;
    • Approximately two-thirds of the tin mined today comes from China, Myanmar and Indonesia;
    • There is no primary tin production in Europe or North America;
    • Tin connects almost all electronic and electrical infrastructure, making it critical to 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, regional and national government support.
    • Cornish Metals has a growing team of skilled people, local to Cornwall, and the Project could generate up to 320 direct jobs.

    TECHNICAL INFORMATION

    The technical information in this news release has been compiled by Mr. Owen Mihalop who 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.

    ON BEHALF OF THE BOARD OF DIRECTORS

    “Kenneth A. Armstrong”
    Kenneth A. Armstrong P.Geo.

    Engage with us directly at our investor hub. Sign up at: https://investors.cornishmetals.com/link/WrAnXP

    For additional information please contact:

    Cornish Metals

    Fawzi Hanano
    Irene Dorsman
    investors@cornishmetals.com
    info@cornishmetals.com
        Tel: +1 (604) 200 6664

    SP Angel Corporate Finance LLP
    (Nominated Adviser & Joint Broker)
    Richard Morrison
    Charlie Bouverat
    Grant Barker
    Tel: +44 203 470 0470
         
    Cavendish Capital Markets Limited
    (Joint Broker)
    Derrick Lee
    Neil McDonald
    Leif Powis
    Tel: +44 131 220 6939

    Tel: +44 207 220 0500
         
    Hannam & Partners
    (Financial Adviser)
    Matthew Hasson
    Andrew Chubb
    Jay Ashfield
    cornish@hannam.partners
    Tel: +44 207 907 8500

         
    BlytheRay
    (Financial PR)
    Tim Blythe
    Megan Ray
    tim.blythe@blytheray.com
    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 certain “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”). Forward-looking statements include predictions, projections, outlook, guidance, estimates and forecasts and other statements regarding future plans, the realisation, cost, timing and extent of mineral resource or mineral reserve estimates, estimation of commodity prices, currency exchange rate fluctuations, estimated future exploration expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, requirements for additional capital and the Company’s ability to obtain financing when required and on terms acceptable to the Company, future or estimated mine life and other activities or achievements of Cornish Metals, including but not limited to: mineralisation at South Crofty, mine dewatering and NCK Shaft refurbishment expectations, timing of completion of a technical report summarising the results of the PEA; the development, operational and economic results of the PEA, including cash flows, capital expenditures, development costs, extraction rates, recovery rates, mining cost estimates; estimation of mineral resources; statements about the estimate of mineral resources; magnitude or quality of mineral deposits; anticipated advancement of the South Crofty project mine plan; future operations; the completion and timing of future development studies; anticipated advancement of mineral properties or programmes; Cornish Metals’ exploration drilling programme, exploration potential and project growth opportunities for the South Crofty tin project and other Cornwall mineral properties and the timing thereof, timing and results of Cornish Metals’ feasibility study, the Company’s ability to evaluate and develop the South Crofty tin project and other Cornwall mineral properties, strategic vision of Cornish Metals and expectations regarding the South Crofty mine, timing and results of projects mentioned. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “forecast”, “expect”, “potential”, “project”, “target”, “schedule”, “budget” and “intend” and statements that an event or result “may”, “will”, “should”, “could”, “would” or “might” occur or be achieved and other similar expressions and includes the negatives thereof. All statements other than statements of historical fact included in this news release, are forward-looking statements that involve various risks and uncertainties and there can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

    Forward-looking statements 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 availability of financing; the timing and content of upcoming work programmes; actual results of proposed exploration activities; possible variations in Mineral Resources or grade; outcome of the current Feasibility Study; projected dates to commence mining operations; 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. The list is not exhaustive of the factors that may affect Cornish’s forward-looking statements.

    Cornish Metals’ forward-looking statements are based on the opinions and estimates of management and reflect their current expectations regarding future events and operating performance and speak only as of the date such statements are made. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ from those described in forward- looking statements, there may be other factors that cause such actions, events or results to differ materially from those anticipated. There can be no assurance that forward-looking statements will prove to be accurate and accordingly readers are cautioned not to place undue reliance on forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. Cornish Metals does not assume any obligation to update forward-looking statements if circumstances or management’s beliefs, expectations or opinions should change other than as required by applicable 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)

      March 31, 2024
      December 31, 2023
     
         
    ASSETS

       
    Current    
    Cash $ 17,015,749     $ 25,791,552  
    Marketable securities   2,795,644       2,665,454  
    Receivables   1,092,930       1,112,638  
    Prepaid expenses   686,699       591,264  
    Deferred financing fees   224,867       135,242  
        21,815,889       30,296,150  
         
    Deposits   87,380       85,954  
    Property, plant and equipment   24,235,161       23,788,325  
    Exploration and evaluation assets   56,705,272       50,050,323  
         
      $ 102,843,702     $ 104,220,752  
         
         
    LIABILITIES    
         
    Current    
    Accounts payable and accrued liabilities $ 4,434,411     $ 5,063,940  
        4,434,411       5,063,940  
    NSR liability   9,286,879       9,064,817  
        13,721,290       14,128,757  
    SHAREHOLDERS’ EQUITY    
    Capital stock   128,394,652       128,394,652  
    Capital contribution   2,007,665       2,007,665  
    Share-based payment reserve   889,839       711,690  
    Foreign currency translation reserve   2,783,083       1,369,146  
    Deficit   (44,952,827 )     (42,391,158 )
         
        89,122,412       90,091,995  
         
      $ 102,843,702     $ 104,220,752  
                   
                   

    CONSOLIDATED CONDENSED INTERIM STATEMENTS OF LOSS AND COMPREHENSIVE LOSS

    (Unaudited)
    (Expressed in Canadian dollars)

      Three months ended
      March 31, 2024   April 30, 2023  
         
    EXPENSES    
    Travel and marketing $ 214,138     $ 89,590  
    Insurance   203,063       172,430  
    Office, miscellaneous and rent   56,505       51,613  
    Professional fees   275,093       200,735  
    Generative exploration costs   1,191       2,607  
    Regulatory and filing fees   29,265       33,274  
    Share-based compensation   123,799       -  
    Salaries, directors’ fees and benefits   1,856,144       373,871  
         
    Total operating expenses   (2,759,198 )     (924,120 )
         
    Interest income   265,666       388,384  
    Foreign exchange gain (loss)   (18,900 )     370,892  
    Unrealized loss on marketable securities   (49,237 )     (41,958 )
         
    Loss for the period   (2,561,669 )     (206,802 )
         
    Foreign currency translation   1,413,937       2,963,722  
    Total comprehensive income (loss) for the period $ (1,147,732 )   $ 2,756,920  
         
    Basic and diluted income (loss) per share $ (0.00 )   $ 0.01  
         
    Weighted average number of common shares outstanding:   535,270,712       535,265,094  
                   
                   

    CONSOLIDATED CONDENSED INTERIM STATEMENTS OF CASH FLOWS

    (Unaudited)
    (Expressed in Canadian dollars)

      For the three months ended
      March 31, 2024   April 30, 2023  
                   
    CASH FLOWS FROM OPERATING ACTIVITIES              
    Loss for the period $ (2,561,669 )   $ (206,802 )
    Items not involving cash:              
    Share-based compensation   123,799       -  
    Unrealized loss on marketable securities   49,237       41,958  
    Foreign exchange loss (gain)   18,900       (370,892 )
                   
    Changes in non-cash working capital items:              
    Decrease (increase) in receivables   19,706       (528,374 )
    Increase in prepaid expenses   (16,527 )     (167,194 )
    Increase in accounts payable and accrued liabilities   1,217,990       200,403  
                   
    Net cash used in operating activities   (1,148,564 )     (1,030,901 )
                   
    CASH FLOWS FROM INVESTING ACTIVITIES              
    Acquisition of property, plant and equipment
      (2,369,406 )     (3,179,655 )
    Acquisition of exploration and evaluation assets   (5,525,982 )     (3,818,598 )
    Increase in deposits   -       (28,750 )
                   
    Net cash used in investing activities   (7,895,388 )     (7,027,003 )
                   
    CASH FLOWS FROM FINANCING ACTIVITIES              
    Increase in deferred financing fees   (85,646 )     -  
    Lease payments   -       (723 )
                   
    Net cash used in financing activities   (85,646 )     (723 )
                   
    Change in cash during the period   (9,129,598 )     (8,058,627 )
    Cash, beginning of the period   25,791,552       55,495,232  
    Impact of foreign exchange on cash   353,795       1,642,270  
                   
    Cash, end of the period $ 17,015,749     $ 49,078,875  
                   
    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)

        Share
                Foreign
                 
      Capital stock subscriptions
          Share-based
    currency
                 
      Number of   received in
      Capital
    payment
    translation
            Shareholders’
     
      shares Amount advance
      contribution
    reserve
    reserve
      Deficit
      equity – total
     
    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  
                     
    Balance at December 31, 2023 535,270,712   $ 128,394,652   $ -   $ 2,007,665   $ 711,690   $ 1,369,146   $ (42,391,158 ) $ 90,091,995  
    Foreign currency translation -     -     -     -     -     1,413,937     -     1,413,937  
    Share-based compensation -     -     -     -     178,149     -     -     178,149  
    Loss for the period -     -     -     -     -     -     (2,561,669 )   (2,561,669 )
    Balance at March 31, 2024 535,270,712   $ 128,394,652   $ -   $ 2,007,665   $ 889,839   $ 2,783,083   $ (44,952,827 ) $ 89,122,412  

     




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    Cornish Metals Releases Unaudited Financial Statements and Management’s Discussion and Analysis for the Three Months Ended 31 March 2024 VANCOUVER, British Columbia, May 22, 2024 (GLOBE NEWSWIRE) - Cornish Metals Inc. (TSX-V/AIM: CUSN) (“Cornish Metals” or the “Company”), a mineral exploration and development company focused on its 100% owned and permitted South Crofty tin project …