TIDMCUSN
RNS Number : 8033Y
Cornish Metals Inc.
17 May 2021
CORNISH METALS RELEASES FINANCIAL STATEMENTS AND MANAGEMENT'S
DISCUSSION AND ANALYSIS FOR THE YEARING 31 JANUARY 2021 AND POSTING
OF ANNUAL ACCOUNTS TO SHAREHOLDERS
May 17, 2021
Cornish Metals Inc. (TSX-V/AIM: CUSN) ("Cornish Metals" or the
"Company"), a mineral exploration and development company focused
on its projects in Cornwall, United Kingdom, is pleased to announce
that it has released its annual financial statements and
management, discussion and analysis ("MD&A") for the year
ending 31 January, 2021. The reports are available under the
Company's profile on SEDAR ( www.sedar.com ) and on the Company's
website ( www.cornishmetals.com ) and have been posted to
shareholders today.
Highlights for the year ended January 31, 2021 and for the
period ending May 13, 2021
-- Gross proceeds of $2,352,500 raised from private placement
completed in February 2020 used for 'proof of concept' drill
program at the South Crofty tin project and for general working
capital purposes;
-- Discovery of new zone of high-grade copper-tin mineralization
at the United Downs exploration project in April 2020;
-- 'Proof of concept' drill program at South Crofty completed
between June and September 2020 with promising high-grade tin and
copper intersections, confirming the potential to increase the
current mineral resource estimate ;
-- Exercise of 16,100,000 warrants during the year ended January
31, 2021, of which 5,222,222 were under an early warrant exercise
incentive program, for proceeds of $1,134,500;
-- Completion of listing and concurrent financing on AIM in
February 2021 raising gross proceeds of GBP8.2 million ($14.4
million based on February 12, 2021 closing exchange rate) to
advance the United Downs exploration project and for general
working capital purposes;
-- Conversion of Osisko loan note in February 2021 into two
royalty agreements over mineral properties in Cornwall with an
accompanying simplified and reduced security package;
-- Agreements reached for the leasing of additional mineral
rights at the South Crofty tin project and surface land surrounding
the New Roskear Shaft, and binding heads of terms agreed for the
disposal of waste material derived from the dewatering of the South
Crofty mine;
-- Financing options continue to be considered to progress the South Crofty tin project;
-- Mr. Patrick Anderson appointed Chairman of the Board in July
2020 while Mr. Grenville Thomas, the previous Chairman, remains a
Director; and
-- Mr. John McGloin appointed as a Director to the Board in October 2020.
Key annual financial metrics
(Expressed in Canadian dollars) 31 January 2021 31 January 2020
Total operating expenses 1,986,727 1,775,705
---------------- ----------------
Loss for the year 1,598,400 4,559,178
---------------- ----------------
Net cash used in operating
activities 1,264,568 1,360,091
---------------- ----------------
Net cash used in investing
activities 1,646,685 504,507
---------------- ----------------
Net cash provided by financing
activities 1,970,752 1,017,247
---------------- ----------------
Cash at end of the financial
year 353,601 1,305,253
---------------- ----------------
Outlook
The proceeds from the recently completed AIM listing are to be
used to conduct a drill program at the United Downs exploration
project, to conduct initial field work on other high priority
exploration targets within transport distance of South Crofty, and
for general working capital purposes . Management believes that,
subject to drilling success, the proceeds from the AIM listing will
result in the Company being fully funded to the completion of a
maiden JORC resource at the United Downs exploration project.
Over the next 12 to 18 months, the Company's plans are as
follows:
-- Commence an 18 month, 9,100 meter initial drilling program at
United Downs to advance the project to Inferred Mineral Resource
definition, fully funded from the proceeds arising from the AIM
listing;
-- To test three lodes with a 1,000 meter of strike length to a
depth of 500 meter in the initial phase. Management believes there
are up to seven further mineralized lode structures with a total
resource potential of between four million tons and ten million
tons;
-- Subject to the outcome of the initial drilling program, to
undertake a subsequent in-fill drilling program at United Downs to
advance the project to a feasibility study within three years;
and
-- Evaluate other near-surface, high potential, exploration
targets within transport distance of the planned processing plant
site.
In the longer term, the Company intends to develop the South
Crofty tin project as and when economic conditions and cashflows
are supportive .
The annual financial statements and management, discussion and
analysis are available on the Company's website .
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement may have been
deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
ABOUT CORNISH METALS
Cornish Metals completed the acquisition of the South Crofty tin
and United Downs copper / tin projects, plus additional mineral
rights located in Cornwall, UK, in July 2016 (see Company news
release dated July 12, 2016 ). 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.
For additional information please contact:
In North America:
Irene Dorsman at (604) 210 8752 or by e-mail at
irene@cornishmetals.com
SP Angel Corporate
Finance LLP
(Nominated Adviser
& Joint Broker) Tel: +44 203 470 0470
Richard Morrison
Charlie Bouverat
Grant Barker
Hannam & Partners
(Joint Broker) Tel: +44 207 907 8500
Matthew Hasson
Andrew Chubb
Ernest Bell
Blytheweigh
(Financial PR/IR-London) Tel: +44 207 138 3204
Tim Blythe tim.blythe@blytheweigh.com
Megan Ray megan.ray@blytheweigh.com
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 .
Caution regarding forward looking statements
This news release contains "forward-looking statements",
including but not limited to, statements with respect to the
continued listing and trading of the Common Shares on the TSX-V and
AIM; and the expected commencement of future exploration programs
at the United Downs and the South Crofty Mine.
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.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As at January 31
(Expressed in Canadian dollars)
2021 2020
------------------------------------------------------ -------------------------- ----------------------------
ASSETS
Current
Cash $ 353,601 $ 1,305,253
Marketable securities 1,004,307 547,721
Receivables 23,644 23,414
Deferred financing fees 688,839 -
Deferred costs on conversion of royalty option 151,037 -
Prepaid expenses 41,691 54,702
2,263,119 1,931,090
Deposits 36,976 36,829
Property, plant and equipment 6,371,852 5,966,727
Exploration and evaluation assets 9,507,859 7,928,688
$ 18,179,806 $ 15,863,334
====================================================== ========================== ============================
LIABILITIES
Current
Accounts payable and accrued liabilities $ 947,124 $ 610,288
Lease liability 20,389 78,595
967,513 688,883
Lease liability - 20,313
Debt 5,993,803 5,210,765
Royalty option 2,886,514 2,886,514
9,847,830 8,806,475
SHAREHOLDERS' EQUITY
Capital stock 40,737,065 37,271,686
Share subscriptions received in advance 189,902 1,175,000
Capital contribution 2,007,665 2,007,665
Share-based payment reserve 846,212 732,930
Foreign currency translation reserve 239,028 149,996
Deficit (35,687,896) (34,280,418)
8,331,976 7,056,859
$ 18,179,806 $ 15,863,334
====================================================== ========================== ============================
CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS
YEARSED JANUARY 31
(Expressed in Canadian dollars)
2021 2020
--------------------------------------------- ------------------------ -----------------
EXPENSES
Accretion $ 292,076 $ 218,408
Advertising and promotion 134,790 406,705
Depreciation 87,034 91,400
Finance cost 9,717 4,072
Insurance 79,270 78,964
Office, miscellaneous and rent 36,708 15,073
Professional fees 305,633 241,021
Generative exploration costs 3,970 6,242
Regulatory and filing fees 30,567 14,074
Share-based compensation 304,204 -
Salaries and benefits 702,758 699,746
Total operating expenses (1,986,727) (1,775,705)
Interest income 4,537 8,162
Foreign exchange loss (8,007) (23,439)
Unrealized gain on marketable securities 391,797 164,344
Realized gain on marketable securities - 30,019
Write off of deferred financing fees - (582,617)
Impairment of royalties - (1,500,000)
Impairment of exploration and evaluation
assets - (879,942)
Loss for the year (1,598,400) (4,559,178)
Foreign currency translation 89,032 149,996
Total comprehensive loss for the year $ (1,509,368) $ (4,409,182)
============================================= ======================== =================
Basic and diluted loss per share $ (0.01) $ (0.05)
Weighted average number of common shares
outstanding 135,320,393 86,768,585
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARSED JANUARY 31
(Expressed in Canadian dollars)
2021 2020
----------------------------------------------------------------- ------------------- -----------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Loss for the year $ (1,598,400) $ (4,559,178)
Items not involving cash:
Accretion 292,076 218,408
Depreciation 87,034 91,400
Share-based compensation 304,204 -
Finance cost 9,717 4,072
Realized gain on marketable securities - (30,019)
Unrealized gain on marketable securities (391,797) (164,344)
Impairment of exploration and evaluation assets - 879,942
Impairment of royalties - 1,500,000
Write off of deferred financing fees - 582,617
Foreign exchange loss - 23,439
Changes in non-cash working capital items:
Increase in receivables (116) (11,308)
Decrease in prepaid expenses 21,470 81,788
Increase in accounts payable and accrued liabilities 11,244 23,092
Net cash used in operating activities (1,264,568) (1,360,091)
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property, plant and equipment (315,779) (18,291)
Acquisition of exploration and evaluation assets (1,330,906) (1,366,235)
Proceeds from the sale of marketable securities,
net - 880,019
Increase in deposits - -
Net cash used in investing activities (1,646,685) (504,507)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from private placement financing 1,177,500 -
Proceeds from fundraising received in advance
of share issue 189,902 1,175,000
Proceeds from warrant exercise 1,134,500 -
Share issue costs (49,427) (750)
Increase in deferred financing fees (344,211) (71,458)
Increase in deferred costs on conversion of royalty (49,174) -
option
Lease payments (88,338) (85,545)
Net cash provided by financing activities 1,970,752 1,017,247
(9,168
Impact of foreign exchange on cash (11,151) )
Change in cash during the year (951,652) (856,519)
Cash, beginning of the year 1,305,253 2,161,772
Cash, end of the year $ 353,601 $ 1,305,253
================================================================= =================== =======================
Cash paid during the year for interest $ - $ -
================================================================= =================== =======================
Cash paid during the year for income taxes $ - $ -
================================================================= =================== =======================
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
YEARS ENDED JANUARY 31
(Expressed in Canadian dollars)
Share Foreign
subscriptions Share-based currency
Number Capital received Capital payment translation
of shares stock in advance contribution reserve reserve Deficit Total
------------------ ------------ ------------- --------------- ------------- ------------- ------------- ----------------------- --------------
Balance at
January
31, 2019 86,768,585 $ 37,271,571 $ - $ 507,665 $ 816,274 $ - $ (29,775,913) $ 8,819,597
Foreign
currency
translation - - - - - 149,996 149,996
Commitment to
issue
shares
pursuant
to
fundraising - - 1,175,000 - - - - 1,175,000
Share issue
costs - (28,556) - - - - - (28,556)
Settlement
of line
of credit - - - 1,500,000 - - - 1,500,000
Forfeiture and
expiry of
stock
options and
warrants - 28,671 - - (83,344) - 54,673 -
Loss for the ( 4,559,178
year - - - - - - ) (4,559,178)
------------------ ------------ ------------- --------------- ------------- ------------- ------------- ----------------------- --------------
Balance at
January
31, 2020 86,768,585 37,271,686 1,175,000 2,007,665 732,930 149,996 (34,280,418) 7,056,859
------------------ ------------ ------------- --------------- ------------- ------------- ------------- ----------------------- --------------
Foreign
currency
translation - - - - - 89,032 - 89,032
Share issuance
pursuant to
private
placement
financing 47,050,000 2,352,500 (1,175,000) - - - - 1,177,500
Share issue
costs - (21,621) - - - - - (21,621)
Commitment to
issue
shares
pursuant
to AIM
listing - - 189,902 - - - - 189,902
Warrant
exercise 16,100,000 1,134,500 - - - - - 1,134,500
Forfeiture and
expiry of
stock
options - - - - (190,922) - 190,922 -
Share-based
compensation - - - - 304,204 - - 304,204
Loss for the
year - - - - - - (1,598,400) (1,598,400)
------------------ ------------ ------------- --------------- ------------- ------------- ------------- ----------------------- --------------
Balance at
January $ ( 35,687,896
31, 2021 149,918,585 $ 40,737,065 $ 189,902 $ 2,007,665 $ 846,212 $ 239,028 ) $ 8,331,976
------------------ ------------ ------------- --------------- ------------- ------------- ------------- ----------------------- --------------
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