(Alliance News) - Cornish Metals Inc began life as a listed company in London on Tuesday after raising GBP8.2 million in its initial public offer.
At its 7 pence IPO price the miner begins trading on AIM with a GBP18.7 million market capitalisation. On Tuesday morning, Cornish was trading at 9.62p each.
Cornish raised GBP8.0 million in an oversubscribed placing with institutional and other professional investors. It then raised an additional GBP206,000 through an offer to high net worth investors. Originally, Cornish was hoping to raise GBP5.0 million.
Cornish said it has placed a total of 117.2 million shares, giving it 267.1 million shares in issue.
The company holds mineral rights covering an area of around 15,000 hectares in Cornwall, England. These rights cover a number of past producing mines such as the South Crofty and United Downs group of mines.
The IPO proceeds will be used to start drilling at the United Downs copper-tin project in Cornwall in late March or early April, Cornish Metals said. The company hopes to determine the resource potential of a 1,000 metre strike section of the target area and conduct initial field work on other high priority exploration targets within trucking distance of the South Crofty mine in Cornwall.
Chief Executive Richard Williams said: "Listing on the AIM market represents a significant milestone for the company and offers investors from the UK the opportunity to be a part of the company's growth as we work towards the goal of becoming a domestic supplier of technology metals fundamental to a green economy."
Cornish Mine's shares will continued to be listed on the TSX Venture Exchange in Canada as well.
By Paul McGowan; paulmcgowan@alliancenews.com
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Cornish Metals. (CUSN)