REG - Cornish Metals Inc. - CORPORATE UPDATE AND GRANT OF SHARE OPTIONS

Cornish MetalsAnnouncement

18/07/2023 07:00

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RNS Number : 2968G  Cornish Metals Inc.  18 July 2023

 

CORNISH METALS CORPORATE UPDATE AND GRANTS INCENTIVE STOCK OPTIONS

 

Vancouver, July 18, 2023

Cornish Metals Inc. (TSX-V/AIM: CUSN) ("Cornish Metals" or the "Company")
announces that it has granted 11,000,000 incentive stock options over common
shares without par value in the Company (the "options") to Executive
Management and senior staff.

The Remuneration Committee of the Company engaged The Bedford Group (Toronto)
and Deloitte (UK) to provide independent guidance on the appropriate levels of
compensation to the executive team, including options, as part of a Long Term
Incentive Plan (LTIP) for a Company the size of Cornish Metals. The Bedford
Group report outlined that stock options be granted annually, with
approximately 2% of the Issued Capital granted as options annually. The
Remuneration Committee will follow this guidance.

To ensure that management is fully aligned with the Company's shareholders,
the exercise price of the options granted herein is £0.18 per share (C$0.30),
the same as the investment price paid by Vision Blue Resources when the
Company raised £40.5M (~C$65M) in May 2022 (see news release dated May 24,
2023). These options have a five year term, whereby the options vest over a
three year period, with one third of the options vesting at the end of each
year. The options will expire on July 17, 2028.

The Company's Stock Option Plan allows for the issuance of up to 10% of the
Issued Capital of the Company.

Prior to this grant, the Company had 5,150,000 options issued, representing
0.96% of the Issued Capital of the Company (535,270,712).  The current
issuance of 11,000,000 options takes the total number of options granted to
16,150,000, representing 3.02% of the Issued Capital.

PDMR Option Grants

Richard Williams (CEO), Owen Mihalop (COO), and Matthew Hird (CFO) were
granted the following options:

 Name                    Position                 Number of shares subject to the options granted  Total Share options Held
 Richard Williams (CEO)  Chief Executive Officer  2,400,000                                        3,200,000
 Owen Mihalop (COO)      Chief Operating Officer  2,000,000                                        2,750,000
 Matthew Hird (CFO)      Chief Financial Officer  1,600,000                                        2,350,000

 

Corporate Update

 

Following the recent Annual General Meeting held June 29, 2023, the following
sub-committees of the Board were duly appointed:

·    Audit Committee                          Ken Armstrong
(Chair), Tony Trahar, Patrick Anderson

·    Remuneration Committee          John McGloin (Chair), Don
Njegovan

·    Sustainability Committee            Stephen Gatley (Chair),
Patrick Anderson

 

The notification below, made in accordance with the requirements of the UK
Market Abuse Regulation, provides further detail.

 

 1       Details of the person discharging managerial responsibilities / person closely
         associated
 a)      Name                                                         1.    Richard Williams

                                                                      2.    Owen Mihalop

                                                                      3.    Matthew Hird
 2       Reason for the notification
 a)      Position/status                                              1.    Chief Executive Officer

                                                                      2.    Chief Operating Officer

                                                                      3.    Chief Financial Officer
 b)      Initial notification /Amendment                              Initial notification

 3       Details of the issuer, emission allowance market participant, auction
         platform, auctioneer or auction monitor
 a)      Name                                                         Cornish Metals Inc.
 b)      LEI                                                          8945007GJ5APA9YDN221
 4       Details of the transaction(s): section to be repeated for (i) each type of

       instrument; (ii) each type of transaction; (iii) each date; and (iv) each
         place where transactions have been conducted
 a)      Description of the financial instrument, type of instrument  Options over common shares without par value

         Identification code                                          CA21948L1040

 b)      Nature of the transaction                                    Grant of options pursuant to the Company LTIP
 c)      Price(s) and volume(s)

                                                                                        Price(s)               Volume(s)
                                                                                        1.    18.00 pence      1.  2,400,000

                                                                                        2.    18.00 pence      2.  2,000,000

                                                                                        3.    18.00 pence      3.  1,600,000

 d)      Aggregated information                                       N/A

         - Aggregated volume                                          N/A

         - Price                                                      18 pence

 e)      Date of the transaction                                      17 July 2023
 f)      Place of the transaction                                     Outside of a trading venue

 

ABOUT CORNISH METALS

Cornish Metals is a dual-listed company (AIM and TSX-V : CUSN)  focused on
advancing the South Crofty high-grade, underground tin project through to
delivery of a Feasibility Study, as well as exploring its additional mineral
rights, all located in Cornwall, South West England. The former producing
South Crofty tin mine is located beneath the towns of Pool and Camborne, and
closed in 1998 following over 400 years of continuous production. Since
acquiring the project in 2016, Cornish Metals has completed and published
maiden NI 43-101 Mineral Resources for South Crofty using the vast archive of
historical production data and more recent drilling completed between 2007 and
2013. Additionally, Cornish Metals has undertaken extensive pilot-scale water
treatment trials and successfully applied for and received the necessary
environmental permits to abstract, treat and discharge mine water in order to
dewater the mine. Planning permissions for the operation of the mine and
re-development of the surface facilities have been secured and construction of
the water treatment plant is currently well underway. The dewatering pumps,
variable speed drives and new high-voltage power supply have been delivered to
site and dewatering of the mine is expected to commence later this summer.

An updated Mineral Resource was completed in June 2021 as summarised below:

 

 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 Mineral Resource Estimate for South Crofty (see news release dated June 9,
2021
(https://cornishmetals.com/news/2021/cornish-metals-releases-updated-mineral-resource-estimate-for-south-crofty-tin-mine/)
), is available in a report titled the "South Crofty Tin Project Mineral
Resource Update
(https://cornishmetals.com/site/assets/files/5449/421007_south_crofty_tin_project_mineral_resource_update_-_22_july_2021_-_sedar_copy.pdf)
", dated June 7, 2021, authored by Mr. N. Szebor, CGeol (London), EuroGeol,
FGS, of AMC Consultants (UK) Ltd, can be accessed on the Company's SEDAR page.

 

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.

 

For additional information please contact:

 

In North America:

 

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

 

 

 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
                                          Jay Ashfield

 BlytheRay                                Tel:                                                                          +44 207 138 3204

 (Financial PR/IR-London)
                                          Tim Blythe                                                                    tim.blythe@blyther (mailto:tim.blythe@blytheray.com) ay
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                                          Megan Ray                                                                     megan.ray@blythe (mailto:megan.ray@blytheray.com) ray
                                                                                                                        (mailto:megan.ray@blytheray.com) .com (mailto:megan.ray@blytheray.com)

 

ON BEHALF OF THE BOARD OF DIRECTORS

 

"Richard D. Williams"

Richard D. Williams, P.Geo

 

 

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.

 

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 "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 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.

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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