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Mining company Cornish Metals is aiming to raise £40.5m from investors including a former Tory party chief executive to restart tin mining at Cornwall's South Crofty mine..

Canadian-headquartered Cornish Metals, which trades on the Stock Exchange’s AIM, said it is to receive £25m from Vision Blue Resources (VBR), a vehicle founded by the ex-Conservative treasurer and chief executive Sir Mick Davis.

Mr Davis, who was formerly head of mining group Xstrata, created VBR to invest in green energy-related metal and mineral resource companies.

Cornish Metals also aims to raise £15.5m from a private share placing to existing and new º£½ÇÊÓƵ institutional investors as well as a subscription by existing Canadian investors and eligible accredited private investors.

It will use the money raised to develop the South Crofty tin project - a fully permitted, former producing high-grade underground tin mine in Cornwall.

Work will include dewatering of the mine, resource drilling, completion of a feasibility study, evaluation of further downstream beneficiation opportunities, and on-site early works in advance of a potential construction decision.

Cornish Metals said demand for tin is expected to increasingly outstrip supply in coming years driven by growing demand from the electronics sector, EVs, and renewable power, especially solar cells.

The fund raise is subject to receipt of shareholder approvals and the approval of the Canadian stock exchange TSX Venture Exchange.