International law firm Simmons & Simmons has advised Vision Blue Resources (VBR) on an additional investment of up to £18m in AIM and Toronto Stock Exchange-listed mining company, Cornish Metals.
VBR is a private equity firm founded by Sir Mick Davis which specialises in metal and mineral resources supporting the energy transition.
As a result of the investment, major shareholder VBR is set to increase its stake in Cornish Metals from 25.95% to up to 29.7%. Part of the proceeds will be used to repay a $9.1m secured bridge loan made by VBR to Cornish Metals.
The additional capital committed by VBR forms part of a £56m total fundraising, which saw the UK Government’s infrastructure bank, the National Wealth Fund (NWF), provide an additional up to £28.75m – a commitment which is set to give it an up to 29% interest in Cornish Metals, which is developing the South Crofty Tin mine in Cornwall.
As well as supporting the wider energy transition, the combined investment is set to deliver significant benefits to the local area, with the UK Chancellor noting how the investment will create “high-quality jobs and opportunity for the region and beyond.”.
The Simmons team advising VBR on its additional investment was led by UK Corporate partner Alexander Keepin, supported by of counsel Simon Kenolty and supervising associate Lipi Rawat.
Alexander Keepin commented: “This additional investment by VBR together with support from the UK Government, will provide both Cornish Metals and the region with a significant boost. It was a pleasure for Simmons to advise VBR again, supporting them with our leading expertise in the energy transition sector.”
