REG - Capital Metals PLC - AGM Statement

Capital MetalsAnnouncement

30/09/2022 07:00

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RNS Number : 3124B  Capital Metals PLC  30 September 2022

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK
VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH
LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED.  ON
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS
INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

30 September 2022

Capital Metals plc

("Capital Metals" or the "Company")

AGM Statement

 

Capital Metals (AIM: CMET), a mineral sands company approaching mine
development stage at the Eastern Minerals project in Sri Lanka (the
"Project"), announces that James Leahy, Non-Executive Director, will make the
following statement at the Annual General Meeting of the Company, which he
will Chair, to be held later today:

"The last 18 months have been an extremely busy period for the Company
culminating in the grant of our Project's first two Industrial Mining
Licences.

A great deal of work has gone into that process, including the approval of the
Environmental Impact Assessment. That we were able to progress these IMLs
during the peak of Sri Lanka's recent economic difficulties reflects both the
quality of the Project and our shared interest in getting it into production
as fast as possible.

The IMLs were a major step forward in advancing the ongoing discussions with
offtakers, debt providers and other strategic funding parties. While the
details of discussions with these parties are commercially sensitive, I am
pleased to confirm that we are in discussions with a range of parties
including large pigment producers out of Asia. Some of those parties have
concluded site visits, conducted detailed testing and analysis of our proposed
mineral products, and reviewed our Development Plan. As previously stated, it
is the Company's expectation that any agreement would contribute capital to
help fund the development of the Project.

The focus of the Company is on finalising those discussions, concluding the
lease agreement for Oluvil Port, which the Ports Authority has formally
confirmed it wishes to enter into, and further refining the technical,
engineering, and economic aspects of the Project in preparation for
construction.

The strong current and forecast prices for our minerals, coupled with the
clear potential for further expansion of our high-grade resource, provides
excellent potential to further enhance the economics of the Project which are
already compelling. We thank our shareholders for their continuing support as
we remain focused on our objective of delivering sustainable value to you, Sri
Lanka, and our local communities."

 

A presentation will be given by Michael Frayne, Chief Executive Officer, and a
copy of this is now available within the Investor Relations section of the
Company's website at www.capitalmetals.com (http://www.capitalmetals.com) .

 

For further information, please visit the website or contact:

 Capital Metals plc                           Via Vigo Consulting

 Michael Frayne (CEO)

 James Mahony (CFO)
 Vigo Consulting (Investor Relations)         +44 (0)20 7390 0234

 Ben Simons / Peter Jacob                     capitalmetals@vigoconsulting.com
 SPARK Advisory Partners (Nominated Adviser)  +44 (0)20 3368 3554

 Neil Baldwin / James Keeshan
 WH Ireland Limited (Joint Broker)            +44 (0)20 7220 1666

 Harry Ansell / Katy Mitchell
 Tavira Financial (Joint Broker)              +44 (0)20 7100 5100

 Jonathan Evans / Oliver Stansfield

 

About Capital Metals

Capital Metals is developing the Eastern Minerals Project in Sri Lanka,
approximately 220km east of Colombo. The Project is one of the highest-grade
mineral sands projects globally, with a current JORC Resource of 17.2Mt with
an average grade of 17.6% Total Heavy Minerals, and potential for significant
resource extension. In May 2022, a third-party Preliminary Economic Assessment
("PEA") provided an NPV for the Project of US$155-235M based on existing
resources, with further identified optimisation potential. The PEA outlined an
attractive low funding requirement of US$37.3M, with expansions funded through
cashflows from the Project, which is forecast to deliver US$645M of revenue
and net operating cashflows of US$391M.

 

CMET's goal is to become a high margin producer of mineral sands for the
international market, with a commitment to applying best-in-class mining
practices and bringing significant positive benefits to Sri Lanka and the
local community.  We expect over 300 direct new jobs to be created and over
US$100m in direct government royalties and taxes to be paid.

 

For more information, visit our website www.capitalmetals.com
(http://www.capitalmetals.com) and follow us on social media:

LinkedIn: https://www.linkedin.com/company/capitalmetals/
(https://www.linkedin.com/company/capitalmetals/)

Twitter: https://twitter.com/MetalsCapital (https://twitter.com/MetalsCapital)

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