REG - Capital Metals PLC - Placing to Raise £625,000

Capital MetalsAnnouncement

11/12/2023 07:00

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RNS Number : 3131W  Capital Metals PLC  11 December 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.

 

11 December 2023

 

Capital Metals PLC

 

("Capital Metals" or the "Company")

 

Placing to Raise £625,000

 

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 £625,000 through a
placing (the "Placing") of 14,705,882 new ordinary shares of 0.2p each (the
"Placing Shares") at a price of 4.25p (the "Placing Price") arranged by Tavira
Financial Limited (the "Broker").

 

Following the announcement of a Subscription on 6 December 2023, the Company
was approached by existing shareholders in the UK who wished to further
support the Company and maintain their holdings. The Board concluded that this
Placing, together with the Subscription, places the Company on a materially
stronger footing whilst it seeks to conclude an offtake financing agreement to
fund the total Project capital expenditure. As with the Subscription funding,
the Placing funds will provide the Company with the ability to accelerate its
plans for commencement of construction. These additional funds will also
permit exploration drilling in conjunction with resource definition drilling
to expand the mineral resources by stepping out and drilling at depth, as well
as enabling the Company to conclude negotiations with some key landowners to
facilitate additional mining licences being granted, underpinning years of
mine planning.

 

The Placing has been conducted within the share capital authorities granted at
the last Annual General Meeting in September 2023.

 

Issue of Broker Warrants ands Fee Shares

 

735,294 broker warrants will be issued to the Broker pursuant to their
engagement terms. The Warrants will be exercisable at the Placing Price for a
period of 3 years from the date of Admission.  737,082 new ordinary shares of
0.2p each will be issued at 4.25p per share to satisfy commissions payable
pursuant to the Subscription announced on 6 December 2023 (the "Fee Shares").

 

Admission and Total Voting Rights

 

Application will be made to the London Stock Exchange for admission of the
Placing Shares and the Fee Shares to trading on AIM ("Admission"). It is
expected that Admission will become effective and dealings in the Placing
Shares and Fee Shares will commence at 8.00 a.m. on or around 14 December
2023.

 

The Placing Shares and Fee 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 in issue will be 309,431,209 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 contact:

 Capital Metals plc                           Via Vigo Consulting

 Greg Martyr (Executive Chairman)
 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 is a UK company listed on the London Stock Exchange (AIM:
CMET). We are developing the Eastern Minerals Project in Sri Lanka,
approximately 220km east of Colombo, containing industrial minerals including
ilmenite, rutile, zircon, and garnet. The Project is one of the highest-grade
mineral sands projects globally, with potential for further grade and resource
expansion. In 2022, a third-party Preliminary Economic Assessment provided a
Project NPV of US$155-235m based on existing resources, with further
identified optimisation potential. We are committed to applying modern 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$130m in direct government royalties and taxes to be paid.

 

Visit our website:

www.capitalmetals.com (http://www.capitalmetals.com)

 

Follow us on social media:

 

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

LinkedIn: @Capital Metals plc (https://uk.linkedin.com/company/capitalmetals)

 

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed
inside information for the purposes of Article 7 of Regulation (EU) No
596/2014 until the release of this announcement.

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