Three deals in one day for Cornish Metals mining firm at South Crofty

The deals are part of an ongoing campaign to keep the mine at Pool in operation and should go some way in eventually resuming operations at the site.

Law firm Stephens Scown LLP has advised on the three new deals that were completed for the Cornish Metals Group this week by Sally Norcross-Webb, mining consultant to Stephens Scown.

The firm also acted for the group in its recent AIM listing and oversubscribed £8.2 million fundraise, which completed in February.

The three deals signed on March 8 included agreement that has been reached with Brownfield Investments Ltd and Roskear Minerals LLP to lease a 1.2 hectare site surrounding New Roskear Shaft in Camborne for up to 23 years.

The second deal was an agreement has also been reached to lease the mineral rights owned by Roskear Minerals LLP within the South Crofty Underground Permission Area for up to 25 years; and

Finally, the third deal involved a binding heads of terms has been agreed with Wheal Jane Ltd for the disposal of waste material derived from the treatment of mine water from South Crofty Mine into the Wheal Jane tailings dam located 12 kilometres east of South Crofty.

The agreement will become effective when dewatering of South Crofty commences.

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Sally Norcross-Webb said: "These are important steps towards the future progress and dewatering of South Crofty Mine, and we have again been delighted to assist management in achieving these significant milestones."

The deals are part of an ongoing campaign to keep the South Crofty mine in operation. Picture:PR

Owen Mihalop, COO at Cornish Metals, said: "The deals we've done are all to persist with the future development of South Crofty.

"We've leased the land around Roskear shaft, which provided ventilation and an emergency escape route from the mine when it was last operating. so by leasing that land, if we can get the mine open again in the future then we'll have the same benefits that shaft provided in the past.

"In addition to that, the same people that part owned that land, they also own the mineral rights under a fairly large area of Camborne (Roskear) and there are valuable mineral resources in that area.

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"By leasing the mineral rights to them we can potentially exploit those in the future from South Crofty.

"We acquired the mine in 2016 and we've been working our way towards de-watering and production for the last four or five years.

"It hasn't been very easy to raise money, commodity prices have been low and there's been a lot of uncertainty surrounding things like Brexit so the commodity markets, the financial markets have been difficult."

"We've managed to advance the project and we've managed to raise the money this year to do some more exploration work and part of that money was also to keep the South Crofty Project alive."

It is hoped by the company that, by the time they are able to resume activities, all of their permits and permissions are still valid.