REG - Capital Metals PLC - Placing to Raise £500,000

Capital MetalsAnnouncement

20/06/2023 07:15

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RNS Number : 2818D  Capital Metals PLC  20 June 2023

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.

 

20 June 2023

 

Capital Metals plc

 

("Capital Metals" or the "Company")

 

Placing to Raise £500,000

 

Capital Metals (AIM: CMET), a mineral sands company approaching mine
development stage at the high-grade Eastern Minerals Project in Sri Lanka (the
"Project"), announces a placing to raise gross proceeds of £500,000 through a
placing (the "Placing") of 50,000,000 new ordinary shares (the "Placing
Shares") at a placing price of 1p (the "Placing Price") arranged by Tavira
Financial Limited (the "Broker"). The Placing has been conducted within the
share capital authorities granted at the most recent Annual General Meeting on
30 September 2022.

 

The net proceeds of the Placing will be applied to general working capital and
the Company's actions to secure the lifting of the suspension of its
Industrial Mining Licences (announced on 12 December 2022) so that Project
development can resume.

 

Greg Martyr, Chairman of Capital Metals, commented:

 

"Today's Placing is necessary to help secure the Company's ability to continue
its actions to resolve the licence issues with the Geological Survey and Mines
Bureau ("GSMB") in Sri Lanka and get the Project development back on track.
Given our belief that the blockage arises from the actions of only a small
number of bad actors, we are confident this can be achieved. Thereafter, with
an MoU in place with the world's leading titanium dioxide pigment manufacturer
to fund the Project into production, the Company will be very well positioned
to deliver the Project to the benefit of all stakeholders."

 

Issue of Warrants

 

Subject to the granting of the necessary authorities at the next General
Meeting of the Company to issue further securities, warrants to subscribe for
2,500,000 shares will be issued to the Broker pursuant to their engagement
terms ("Warrants"). The Warrants will be exercisable at the Placing Price for
a period of 3 years from the date of Admission (as defined below). Notice of a
General Meeting will be announced in due course.

 

Admission and Total Voting Rights

 

Application will be made to the London Stock Exchange for admission of the
Placing Shares to trading on AIM ("Admission"). It is expected that Admission
will become effective and dealings in the Placing Shares will commence at 8.00
a.m. on or around 23 June 2023 (or such later date as may be agreed between
the Company and the Broker, but no later than 10 July 2023).

 

The Placing Shares will be issued fully paid and will rank pari passu in all
respects with the Company's existing Ordinary Shares.

 

Following Admission, the total number of Ordinary Shares in the capital of the
Company on issue will be 239,103,432 with voting rights. This figure may be
used by shareholders as the denominator for the calculations by which they
will determine if they are required to notify their interest in, or a change
to their interest in, the Company's share capital pursuant to (i) the
Company's Articles, (ii) the Financial Conduct Authority's Disclosure
Guidance and Transparency Rules and/or (iii) the AIM Rules for Companies
issued by the London Stock Exchange plc as amended from time to time.

 

For further information, please visit www.capitalmetals.com
(http://www.capitalmetals.com) or contact:

 

 Capital Metals plc                           Via Vigo Consulting

 Greg Martyr (Chairman)

 Michael Frayne (CEO)

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

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

 Neil Baldwin / James Keeshan
 Tavira Financial                             +44 (0)20 7100 5100

 Jonathan Evans / Oliver Stansfield

 

About Capital Metals

 

Capital Metals plc is a British company listed on the London Stock Exchange
and one of only a few foreign investors in Sri Lanka's mining industry. After
investing US$11 million in exploration and development activities including
detailed environmental assessments between 2017 and 2022, the Company's Sri
Lankan subsidiary, Damsila Exports (Pvt) Limited, was issued an initial two
licences in August 2022 to mine heavy mineral sands in the Eastern Province,
containing industrial minerals including ilmenite, rutile, zircon, and garnet.

 

 

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