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Good morning Bubble.
It would be good to know the locations of the 3 ? drilling units. I wonder if they have started at Wheal Alfred (Gwinear) yet.
Given a lot of the mines within the CUSN estate closed a very long time ago, I reckon that with modern methods of exploration we may have a number of surprises - particularly from deeper level exploration which may not have been undertaken in the past.

Thanks CK for the SC decline info.

What was the company trying to achieve by driving off in a westerly direction in 2008? Were they trying to access a new resource? In which case is the resource still there and available to mine before de-watering starts?

Another thing coming from your chairing structure link CK, apart from the presence of Lord Grimstone (see prior posts/links below) is the reference he makes to
"Cornwall Mining High Potential Opportunity programme"
Sounds like an official title for a potential funding project to me.


This week is going to be interesting.

A most useful comment

CK Totally agree. I think the deal is an absolute stunner and exceedingly good news for CUSN shareholders.
From Galena's perspective, if the company does well, their shares will do well. I suspect we could see a steep rise in the share price with all the potential news that may arrive over the next few weeks i.e.
UD initial results
De-watering decision at SC
Possibility of funding from the Investment Fund (DTI)
Council help
Lithium and Geothermal developments (more gigafactory announements)
Drilling elsewhere on the CUSN mineral resources estate

CK
I am a bit confused about what has been posted re the water in the decline at SC.
The video posted of the interview with RW left me with the impression that the accessible part of the decline went below the water level in the shafts. That gave me the idea that it was currently possible to access areas below the water elsewhere in the mine. Is the water level in the decline at the same depth as elsewhere in the mine?

CK You asked:-
" If Galena wanted to invest on the open market, how would they have managed to purchase 20% of the capital? "

By pushing the share price up until selling volume= buying volume. i.e. true price discovery.

If you wanted to buy 20%, would you not expect to buy on the market from existing owners, like everybody else ?

In this case, it looks as if the price Galena will pay for their shares will be the average of the price of the previous 20 days prior to the crystallising event. At least a huge discount is not being offered.

Thanks again CK.

For those who wish to know more about Lord Grimstone:-
https://www.gov.uk/government/people/gerry-grimstone

Given Lord Grimstone's age and background, I don't think he would seek publicity/popularity/votes. I interpret the lack of press coverage, as indicating a wish for a low profile fact finding visit. If a decision had been made, there possibly would have been publicity. If a decision is made following the visit, we certainly will hear about it, but for the moment I would guess the possibility of grant aid is under consideration.
The effort to reopen SC ticks all the Government boxes. Levelling up, building resiliance, and providing materials for the switch to EVs / green agenda. So fingers crossed.

Whilst the installation of the chairing structure is a key development, I think of far greater importance is the fact that Lord Grimstone was present. He has £7bn of £8bn to spend on levelling up industrial grants/investments. He is probably at SC to assess and perhaps approve some government financial assistance. Extremely GOOD NEWS.

https://www.mining.com/chart-study-predicts-over-400-increase-in-copper-lithium-nickel-battery-demand/?utm_source=Battery_Metals_Digest&utm_medium=email&utm_campaign=MNG-DIGESTS&utm_content=chart-study-predicts-over-400-increase-in-copper-lithium-nickel-battery-demand

CK Many thanks. It is great to have your knowledge on this board.

You wrote earlier:- " ...that would equate to another 20% of shares being issued, which cannot be offered to existing holders,..."
What would have stopped the board having a rights issue, and paying GSSF/TS cash instead of shares?

As the shares are not to be issued at a discounted price I am re-assured, but I thought the BoD were going to maintain pre-emption rights, so this has un-nerved me a bit.

CK
Wholeheartedly agree. I also think now it is a case of "when" not if.
Thinking about what you wrote -----
"As part of the terms of the restructure, Cornish Metals will be paying $4.5 million US in shares to Galena if financing for dewatering is closed and another $5 million if reopening finance is approved, that would equate to another 20% of shares being issued, which cannot be offered to existing holders, hence the special resolution.

It appears the new shares being offered to GSSF/Tin Shield are going to be at market prices - average of the prices of the preceding 20 days- which is a million miles away from a detested discounted placing. I expect there is probably a lock in period.

You also wrote an extremely insightful comment in:-
"Now they do, but the terms on crofty have been massively reduced. If hey weren't looking at dewatering crofty, why would they have cut them into united downs?"
By "cut them into UD" I take you mean that a start at UD is a trigger point for the payment. No share of UD revenues accrues to GSSF / Tin Shield. What this does is to give GSSF/TS something no matter which project CUSN starts first. Seems fair, as I think the 30,000 acres including UD probably came from GSSF/TS on initial purchase.

The share price has not reacted to the change in deferred consideration. Strange. If the market thought CUSN was worth around £40m before the change, because the change is worth around another £40m to the value of CUSN, theoretically the share price should now be double!

Next week could be very exciting!

Many thanks CK

I think the on-line AGM due 30 July, could be a lively and interesting affair. See links:-
https://www.cornishmetals.com/investors/events/agm/
https://www.cornishmetals.com/site/assets/files/5120/cornish_-_2021_notice_of_meeting.pdf
https://www.cornishmetals.com/site/assets/files/5122/cornish_-_2021_return_card.pdf
and IMPORTANTLY :-
https://www.cornishmetals.com/site/assets/files/5123/cornish_-_2021_management_proxy_circular.pdf

The latter link, amongst other things, deals with pre-emption rights. Given CUSN financing needs, the details of in what circumstance directors can issue shares are of critical importance to existing shareholders. My own strongly held view is that existing shareholders SHOULD ALWAYS be offered shares at whatever prices are considered appropriate, FIRST.
I strongly believe that dis applying pre-emption rights is very likely to result in value which should accrue to existing shareholders being given to outsiders. My view is that unless insignificant number of shares are involved, new shares should ALWAYS be offered to existing shareholders first. I do not want to find for example that existing shareholders have been buying in the open market only to find big issues of shares to outsiders, at a discounted price, take place shortly thereafter. The way to avoid that situation is to offer new shares at a discount to existing shareholders first. Any left over can be taken by outsiders.
The proposal seems to protect pre-emption right in the main, but it looks to me as if up to 25% more shares can be issued without being offered to existing shareholders first. I am not keen on this, but what do others think?

I thought there was some talk of having consultants in to update the PEA. Might this mean a change in the approach to re-opening the mine?
With modern mining methods, how far could the Tuckingmill decline be advanced every day? Would a modern tunneling machine fit into the existing decline in order to continue it to greater depth?
The Tuckingmill decline descends and is accessible to below the water table. Does this mean mining can re-commence before full de-watering has taken place?

I thought there was some talk of having consultants in to update the PEA. Might this mean a change in the approach to re-opening the mine?
With modern mining methods, how far could the Tuckingmill decline be advanced every day? Would a modern tunneling machine fit into the existing decline in order to continue it to greater depth?
The Tuckingmill decline descends and is accessible to below the water table. Does this mean mining can re-commence before full de-watering has taken place?

Many thanks Southwesterner.

Bubble

Was it TV or Radio 4 you were referring to?

Many thanks Bubble. I will tune in!

Anyone know if Tungsten West might do the processing for CUSN? My understanding is that CUSN is going to build a process plant at a high cost on the surface at SC. But if initial sorting is done underground at SC, would it be feasible to transfer ore to
Hemerdon for processing ? TW already have a processing plant, but I do not know if it would be appropriate for SC sorted production? If it is capable might a few tens of millions £ be saved? I wonder if there is a rail link to Hemerdon? The rail line passes by SC. TW is floating on AIM soon.