REG - Cornish Metals Inc. - Cornish Lithium Extends Exploration Option

Cornish MetalsAnnouncement

10/01/2022 07:05

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RNS Number : 8459X  Cornish Metals Inc.  10 January 2022

 

CORNISH LITHIUM EXTENDS EXPLORATION OPTION FOR A FURTHER 12 MONTHS

Vancouver, January 10, 2022

Cornish Metals Inc. (TSX-V / AIM: CUSN) ("Cornish Metals" or the "Company") is
pleased to report that it has received notice from Cornish Lithium Ltd ("CLL")
whereby CLL has elected to extend its option to explore the Company's mineral
rights in Cornwall, UK, for minerals-in-brine for a further 12 months.

Under the Exploration and Option Deed (the "Deed") entered into by the Company
and CLL in January 2017, CLL has chosen to extend the Deed for an additional
12-month period in consideration for the issuance to the Company of shares in
the capital of CLL equal to US$100,000 based on CLL's last share issue price.
 Upon receipt of the shares, the Company will own 6,713,940 shares of CL.

Background

·    Cornish Metals granted CLL an option to explore for minerals in brine
and geothermal waters on Cornish Metals' mineral rights in Cornwall, UK, in
January 2017 (see news release here
(https://www.cornishmetals.com/news/2017/strongbow-options-lithium-brine-exploration-rights-to-cornish-lithium-limited-exploring-lithium-in-brines-and-geothermal-energy/)
).

·    The Company will have a 25% free carried interest in CLL's first
project on the Company's mineral rights which has a Bankable Feasibility Study
completed on it. Following the Bankable Feasibility Study, the Company will be
required to contribute its share of development costs or its interest will be
diluted.

·    The Company will have a 10% free carried interest in each subsequent
project developed by CLL on the Company's mineral rights which has a Bankable
Feasibility Study completed on it. Following the Bankable Feasibility Study,
the Company will be required to contribute its share of development costs or
its interest will be diluted.

·    The Company will have a 2% Gross Revenue Royalty payable from any
production by CLL of minerals from brines from the Company's mineral rights
and a 2% Gross Revenue Royalty payable from any geothermal energy produced by
CLL and sold to the National Grid or other system from its mineral rights.

·    On each anniversary of the date of the Deed for the initial five year
period, CLL had the option to extend the Deed for a further 12-month period in
consideration of the issuance of US$50,000 in shares in the capital of CLL to
the Company.

·    Commencing January 2022 up to and including January 2026, in the
event CLL elects to extend the Deed for a subsequent 12-month period, the
annual payments to the Company will be US$100,000 in shares in the capital of
CLL.

·    CLL can continue to renew the Deed after January 2026 but with a
rising option fee.

Richard Williams, CEO, stated "We welcome Cornish Lithium's decision to
continue to explore our Mineral Rights for lithium in brine, a decision that
reaffirms the exploration potential for lithium in a variety of geological
environments in Cornwall. We look forward to working with CLL over the coming
years to progress the development of the UK's first lithium in brine project."

ABOUT CORNISH METALS

Cornish Metals owns a 100% interest in the South Crofty tin and United Downs
copper - tin projects, plus additional mineral rights located in Cornwall, UK,
acquired in July 2016 (see Company news release dated July 12, 2016
(about:blank) ). The Company recently published an updated Mineral Resource
Estimate for South Crofty (see news release dated June 9, 2021
(https://www.cornishmetals.com/news/2021/cornish-metals-releases-updated-mineral-resource-estimate-for-south-crofty-tin-mine/)
), as summarised in the table below. The "South Crofty Tin Project Mineral
Resource Update" report, dated June 9, 2021, authored by Mr. Nicholas Szebor
(CGeol (London), EuroGeol, FGS) of AMC Consultants (UK) Ltd, can be accessed
on the Company's website
(https://www.cornishmetals.com/site/assets/files/5449/421007_south_crofty_tin_project_mineral_resource_update_-_22_july_2021_-_sedar_copy.pdf)
.

 South Crofty Summary (JORC 2012) Mineral Resource Estimate
 Area        Classification  Mass        ('000 tonnes)         Grade                    Contained Tin / Tin Equivalent ('000 tonnes)  Increase in contained Tin / Tin equivalent from 2016 MRE
 Lower Mine  Indicated       2,084                             1.59% Sn                 33                                            10.2%
             Inferred        1,937                             1.67% Sn                 32                                            129.8%

 Upper Mine  Indicated       277                               1.01% SnEq               3                                             9.5%
             Inferred        493                               0.93% SnEq               5                                             8.0%

 

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.

About Cornish Lithium

Cornish Lithium is a highly innovative mineral exploration and development
company focused on the environmentally sustainable extraction of lithium from
geothermal waters and hard rock in the historic mining district of Cornwall.
The Company has secured agreements with the owners of mineral rights over a
large area of the County and is using modern technology to re-evaluate the
region for its potential to produce lithium and other vital technology metals
in a low carbon and low impact manner. A secure domestic supply of such metals
is considered vital to the industrial strategy of the UK as it moves towards
Net Zero 2050 and the production of electric vehicles.

For more information about Cornish Lithium, visit www.cornishlithium.com

For additional information please contact:

 

In North America:

 

Irene Dorsman at (604) 200 6664 or by e-mail at irene@cornishmetals.com
(about:blank)

 

In the UK:

 

 SP Angel Corporate Finance LLP           Tel:                                                                          +44 203 470 0470

 (Nominated Adviser & Joint Broker)
                                          Richard Morrison
                                          Charlie Bouverat
                                          Grant Barker

 Hannam & Partners                        Tel:                                                                          +44 207 907 8500

 (Joint Broker)
                                          Matthew Hasson
                                          Andrew Chubb
                                          Ernest Bell

 Blytheweigh                              Tel:                                                                          +44 207 138 3204

 (Financial PR/IR-London)
                                          Tim Blythe                                                                    tim.blythe@blytheweigh.com (about:blank)
                                          Megan Ray                                                                     megan.ray@blytheweigh.com (about:blank)

 

 

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.

 

Market Abuse Regulation (MAR) Disclosure

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic
law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

 

 

Caution regarding forward looking statements

 

This news release contains "forward-looking statements".  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.

 

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