Under the agreement with Osisko Gold Royalties, the junior would convert the outstanding amount of $7.17 million under a 2018 note financing to a 1.5% net smelter return royalty on its South Crofty tin project, and a 0.5% NSR royalty on any other mineral rights it held outside South Crofty in Cornwall.
The financing and royalty option was announced in January 2018.
Cornish Metals said yesterday the agreement was subject to certain conditions, including a successful listing on London's AIM exchange, which was expected next month.
"This transaction clears the path forward for our company with a much cleaner balance sheet as we embark on our UK listing," CEO Richard Williams said.
"We thank our partner, Osisko, for their continued support and cooperation."
The company, previously Strongbow Exploration, is looking to breathe new life into the Cornish mining industry.
It owns the past-producing South Crofty tin mine and made the high-grade United Downs copper-tin discovery 8km away last year.
It also has exposure to the area's lithium and geothermal potential through an agreement with Cornish Lithium, which gives it a free carried interest and royalty on projects within its mineral rights areas.
Its shares (TSXV: CUSN), which spent much of 2020 below 10c, gained 47.4% yesterday to a closing high of 14c, capitalising it at $19.6 million (US$15.4 million).