Cornish Lithium, a mining startup that was started by former Investec banker Jeremy Wrathall, has raised nearly £4 million from numerous investors. The company plans to use these funds for tapping Cornwall’s rich lithium reserves. For the record, lithium is considered a crucial component of electric vehicle batteries.
Reportedly, the mining startup has managed to double its initial goal of £1.5 million after it received backing from more than 2,000 investors during its crowdfunding. On Monday, Cornish Lithium had set this target on Crowdcube, however, the next day it reached around £3.8m given to oversubscribed funding from investors.
According to reliable sources, the mining company intends to tap into the premium grade of lithium found in Redruth’s hot springs near the village of Gwennap. Wrathall plans to commence production within the next three to five years. He believes that Cornwall could have enough lithium reserves to make Britain a battery hub. This would once again revive the country’s oldest industry.
Lately, lithium has been witnessing heavy demand owing to its integral role in batteries including those in EVs. As of now, lithium is majorly found in places like Chile, Australia and China. After commencing the mining activity, Wrathall believes Cornwall will also be on this list while taking care of UK’s demand.
Evidently, the lithium exploration in Cornwall has already uncovered fresh copper reserves. Commenting on the development, Deborah Reeve, Mayor, Redruth, said that Cornish Lithium’s initiative comes as a brilliant opportunity for Cornwall. The local community is hopeful about this initiative.
In addition to its initial £1.4 million crowdfunding from last summer, Cornish Lithium has managed to secure roughly £4.2 million from its angel investors and founders. As a result of this crowdfunding, Cornish Lithium’s shares rose from 5.3p to 9p, taking the company’s valuation to £40 million.