The possibility of full scale tin mining returning to South Crofty has suffered a major blow due to the escalating costs.
One of the mine’s main investors, Canadian firm Celeste Mining Corporation, says it is reviewing and evaluating cost-cutting measures at the mine, “including but not limited to, temporarily halting its exploration and development activities”.
It said in a statement: “The strategic review is a result of deteriorating equity markets, the financial position of the company, operational complexities and higher than anticipated exploration and development expenses at the South Crofty Mine.
“Management continues to actively engage strategic partners in an effort to explore alternative funding strategies, which may include a brokered convertible financing.
“If the company and its partners cannot agree on such cost cutting measures, the company may elect not to contribute further expenditures which could result in dilution to its interest in the South Crofty Mine.”
Meanwhile, it has also emerged that the Celeste board has relieved Alan Shoesmith of his duties as president and CEO, although he remains CEO of the mine’s owener, Western United Mines.