12 Jul British Lithium Miner Turns to Crowdfunding to Pay for Drilling
(Bloomberg) — A British lithium company is trying to raise 1 million pounds ($1.25 million) for exploratory drilling through a crowdfunding site.
Cornish Lithium Ltd. is beginning its fundraising campaign via Crowdcube, which raises money for startups from individual investors online. The company said it’s using the platform after receiving requests from people, including local residents, to support developing the project.
The company is headed by Jeremy Wrathall, the former head of mining research at Investec Plc. He started the company in 2016 and secured exploration rights in Cornwall, a region once famous for its tin and copper mines.
Approximately half of the proceeds from the crowdfunding would be spent on drilling, with the reminder on current operations, he said. Cornish Lithium plans to drill two to three exploration boreholes this year that are roughly 1,000 meters (3,300 feet) from the surface.
Wrathall said the company has already raised 2 million pounds from private investors. Over the time, it will turn to “conventional funding sources,” such as a private placement or initial public offering in London, he said.