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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)

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

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:

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.

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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