VANCOUVER, British Columbia, May 17, 2021 (GLOBE NEWSWIRE) -- 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 annual financial statements and management, discussion and analysis (“MD&A”) for the year ending 31 January, 2021. The reports are available under the Company’s profile on SEDAR (www.sedar.com) and on the Company’s website (www.cornishmetals.com) and have been posted to shareholders today.

Highlights for the year ended January 31, 2021 and for the period ending May 13, 2021

  • Gross proceeds of $2,352,500 raised from private placement completed in February 2020 used for ‘proof of concept’ drill program at the South Crofty tin project and for general working capital purposes;
  • Discovery of new zone of high-grade copper-tin mineralization at the United Downs exploration project in April 2020;
  • ‘Proof of concept’ drill program at South Crofty completed between June and September 2020 with promising high-grade tin and copper intersections, confirming the potential to increase the current mineral resource estimate;
  • Exercise of 16,100,000 warrants during the year ended January 31, 2021, of which 5,222,222 were under an early warrant exercise incentive program, for proceeds of $1,134,500;
  • Completion of listing and concurrent financing on AIM in February 2021 raising gross proceeds of £8.2 million ($14.4 million based on February 12, 2021 closing exchange rate) to advance the United Downs exploration project and for general working capital purposes;
  • Conversion of Osisko loan note in February 2021 into two royalty agreements over mineral properties in Cornwall with an accompanying simplified and reduced security package;
  • Agreements reached for the leasing of additional mineral rights at the South Crofty tin project and surface land surrounding the New Roskear Shaft, and binding heads of terms agreed for the disposal of waste material derived from the dewatering of the South Crofty mine;
  • Financing options continue to be considered to progress the South Crofty tin project;
  • Mr. Patrick Anderson appointed Chairman of the Board in July 2020 while Mr. Grenville Thomas, the previous Chairman, remains a Director; and
  • Mr. John McGloin appointed as a Director to the Board in October 2020.

Key annual financial metrics

(Expressed in Canadian dollars)31 January 202131 January 2020
   
Total operating expenses1,986,7271,775,705
Loss for the year1,598,4004,559,178
Net cash used in operating activities1,264,5681,360,091
Net cash used in investing activities1,646,685504,507
Net cash provided by financing activities1,970,7521,017,247
Cash at end of the financial year353,6011,305,253

Outlook

The proceeds from the recently completed AIM listing are to be used to conduct a drill program at the United Downs exploration project, to conduct initial field work on other high priority exploration targets within transport distance of South Crofty, and for general working capital purposes. Management believes that, subject to drilling success, the proceeds from the AIM listing will result in the Company being fully funded to the completion of a maiden JORC resource at the United Downs exploration project.

Over the next 12 to 18 months, the Company’s plans are as follows:

  • Commence an 18 month, 9,100 meter initial drilling program at United Downs to advance the project to Inferred Mineral Resource definition, fully funded from the proceeds arising from the AIM listing;
  • To test three lodes with a 1,000 meter of strike length to a depth of 500 meter in the initial phase. Management believes there are up to seven further mineralized lode structures with a total resource potential of between four million tons and ten million tons;
  • Subject to the outcome of the initial drilling program, to undertake a subsequent in-fill drilling program at United Downs to advance the project to a feasibility study within three years; and
  • Evaluate other near-surface, high potential, exploration targets within transport distance of the planned processing plant site.

In the longer term, the Company intends to develop the South Crofty tin project as and when economic conditions and cashflows are supportive.

The annual financial statements and management, discussion and analysis are available on the Company’s website.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement may have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

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.

For additional information please contact:
In North America:
Irene Dorsman at (604) 210 8752 or by e-mail at irene@cornishmetals.com

SP Angel Corporate Finance LLP
(Nominated Adviser & Joint Broker) 
Tel:+44 203 470 0470
 Richard Morrison 
 Charlie Bouverat 
 Grant Barker 
   


Hannam & Partners
(Joint Broker)
Tel:

+44 207 907 8500

 Matthew Hasson 
 Andrew Chubb 
 Ernest Bell 
   
Blytheweigh
(Financial PR/IR-London)
Tel:+44 207 138 3204

 Tim Blythetim.blythe@blytheweigh.com
 Megan Raymegan.ray@blytheweigh.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 with respect to the continued listing and trading of the Common Shares on the TSX-V and AIM; and the expected commencement of future exploration programs at the United Downs and the South Crofty Mine.

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; 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.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS AT JANUARY 31
(Expressed in Canadian dollars)

  2021  2020 
   
ASSETS  
   
Current  
        Cash$353,601 $1,305,253 
        Marketable securities 1,004,307  547,721 
        Receivables 23,644  23,414 
Deferred financing fees 688,839  - 
Deferred costs on conversion of royalty option 151,037  - 
        Prepaid expenses 41,691  54,702 
  2,263,119  1,931,090 
   
Deposits  36,976  36,829 
Property, plant and equipment 6,371,852  5,966,727 
Exploration and evaluation assets  9,507,859  7,928,688 
   
 $18,179,806 $15,863,334 
   
   
LIABILITIES   
   
Current  
        Accounts payable and accrued liabilities$947,124 $610,288 
        Lease liability  20,389   78,595 
  967,513  688,883 
Lease liability  -  20,313 
Debt  5,993,803  5,210,765 
Royalty option  2,886,514   2,886,514 
   9,847,830   8,806,475 
   
SHAREHOLDERS’ EQUITY  
        Capital stock 40,737,065  37,271,686 
Share subscriptions received in advance 189,902  1,175,000 
Capital contribution 2,007,665  2,007,665 
        Share-based payment reserve 846,212  732,930 
Foreign currency translation reserve 239,028  149,996 
Deficit  (35,687,896)  (34,280,418)
   
  8,331,976  7,056,859 
   
 $18,179,806 $15,863,334 

CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS
YEARS ENDED JANUARY 31
(Expressed in Canadian dollars)

  2021  2020 
   
EXPENSES  
        Accretion$292,076 $218,408 
Advertising and promotion 134,790  406,705 
        Depreciation 87,034  91,400 
Finance cost 9,717  4,072 
        Insurance 79,270  78,964 
        Office, miscellaneous and rent 36,708  15,073 
        Professional fees 305,633  241,021 
Generative exploration costs 3,970  6,242 
        Regulatory and filing fees

Share-based compensation
 30,567

304,204
  14,074

-
 
Salaries and benefits  702,758   699,746 
   
Total operating expenses (1,986,727) (1,775,705)
   
Interest income 4,537  8,162 
Foreign exchange loss (8,007) (23,439)
Unrealized gain on marketable securities 391,797  164,344 
Realized gain on marketable securities -  30,019 
Write off of deferred financing fees -  (582,617)
Impairment of royalties -  (1,500,000)
Impairment of exploration and evaluation assets  -   (879,942)
   
Loss for the year (1,598,400) (4,559,178)
   
      Foreign currency translation  89,032   149,996 
Total comprehensive loss for the year$(1,509,368)$(4,409,182)
   
Basic and diluted loss per share$(0.01)$(0.05)
   
Weighted average number of common shares outstanding  135,320,393  86,768,585 

CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED JANUARY 31
(Expressed in Canadian dollars)

  2021  2020 
   
CASH FLOWS FROM OPERATING ACTIVITIES  
        Loss for the year$(1,598,400)$(4,559,178)
        Items not involving cash:  
Accretion 292,076  218,408 
                Depreciation 87,034  91,400 
Share-based compensation 304,204  - 
Finance cost 9,717  4,072 
Realized gain on marketable securities -  (30,019)
Unrealized gain on marketable securities (391,797) (164,344)
Impairment of exploration and evaluation assets -  879,942 
Impairment of royalties -  1,500,000 
Write off of deferred financing fees -  582,617 
Foreign exchange loss -  23,439 
   
        Changes in non-cash working capital items:  
                Increase in receivables (116) (11,308)
                Decrease in prepaid expenses 21,470  81,788 
                Increase in accounts payable and accrued liabilities  11,244   23,092 
   
        Net cash used in operating activities  (1,264,568)  (1,360,091)
   
CASH FLOWS FROM INVESTING ACTIVITIES  
Acquisition of property, plant and equipment

Acquisition of exploration and evaluation assets

Proceeds from the sale of marketable securities, net

      Increase in deposits
 (315,779

(1,330,906

-

-
  (18,291

(1,366,235

880,019

-
)

)



        Net cash used in investing activities  (1,646,685)  (504,507)
   
CASH FLOWS FROM FINANCING ACTIVITIES  
Proceeds from private placement financing 1,177,500  - 
Proceeds from fundraising received in advance of share issue 189,902  1,175,000 
Proceeds from warrant exercise 1,134,500  - 
Share issue costs (49,427) (750)
Increase in deferred financing fees (344,211) (71,458)
Increase in deferred costs on conversion of royalty option (49,174) - 
Lease payments  (88,338)  (85,545)
   
        Net cash provided by financing activities  1,970,752   1,017,247 
   
Impact of foreign exchange on cash  (11,151)  (9,168)
   
Change in cash during the year (951,652) (856,519)
Cash, beginning of the year  1,305,253   2,161,772 
   
Cash, end of the year$353,601 $1,305,253 
   
Cash paid during the year for interest$- $- 
   
Cash paid during the year for income taxes$- $- 

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
YEARS ENDED JANUARY 31
(Expressed in Canadian dollars)

 Number of
shares
Capital stockShare
subscriptions
received in
advance
Capital
contribution
Share-based
payment
reserve
Foreign
currency
translation

reserve
DeficitTotal
Balance at January 31, 201986,768,585$37,271,571 $- $507,665$816,274 $-$(29,775,913)$8,819,597 
Foreign currency translation- -  -  - -  149,996  149,996 
Commitment to issue shares pursuant to fundraising- -  1,175,000  - -  - -  1,175,000 
Share issue costs- (28,556) -  - -  - -  (28,556)
     Settlement of line of credit- -  -  1,500,000 -  - -  1,500,000 
Forfeiture and expiry of stock options and warrants- 28,671  -  - (83,344) - 54,673  - 
Loss for the year- -  -  - -  - (4,559,178) (4,559,178)
Balance at January 31, 202086,768,585   37,271,686   1,175,000   2,007,665  732,930    149,996  (34,280,418 )  7,056,859 
         
Foreign currency translation- -  -  - -  89,032 -  89,032 
Share issuance pursuant to private placement financing47,050,000 2,352,500  (1,175,000) - -  - -  1,177,500 
Share issue costs- (21,621) -  - -  - -  (21,621)
Commitment to issue shares pursuant to AIM listing- -  189,902  - -  - -  189,902 
Warrant exercise16,100,000 1,134,500  -  - -  - -  1,134,500 
Forfeiture and expiry of stock
options
- -  -  - (190,922) - 190,922  - 
Share-based compensation- -  -  - 304,204  - -  304,204 
Loss for the year- -  -  - -  - (1,598,400) (1,598,400)
Balance at January 31, 2021149,918,585 $ 40,737,065 $ 189,902 $ 2,007,665$ 846,212 $ 239,028$ (35,687,896 )$ 8,331,976  


Primary Logo