REG - Capital Metals PLC - Subscription to Raise £626,520

Capital MetalsAnnouncement

06/12/2023 13:45

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RNS Number : 9129V  Capital Metals PLC  06 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.

 

6 December 2023

 

Capital Metals PLC

 

("Capital Metals" or the "Company")

 

Subscription to Raise £626,520 to Accelerate Mine Construction Planning

 

Capital Metals (AIM: CMET), a mineral sands company approaching mine
development stage at the high-grade Eastern Minerals Project in Sri Lanka (the
"Project"), is pleased to announce it has raised £626,520 (approximately
A$1.2 million) through a direct subscription for 14,741,647 new ordinary
shares (the "Subscription") at an issue price of 4.25p.

 

The vast majority of the investment in the Subscription is from an existing
Australian shareholder holding over 5% of the Company's current issued share
capital, with the balance being provided by one other investor. Both had
indicated a desire to inject capital to strengthen the Company's position,
thereby enabling an acceleration of mine construction planning activities,
while progressing positively towards the creation of a Joint Venture with LB
Group to unlock the funding for the total capital expenditure for the Project.

 

Priority Project workstreams include hiring additional people and consultants,
accelerating the process to obtain additional Industrial Mining Licences, and
pre-mining resource definition work.

 

The Subscription has been conducted directly between the Company and the two
investors, falling within the share capital authorities granted at the last
Annual General Meeting.

 

Admission and Total Voting Rights

 

Application will be made to the London Stock Exchange for admission of the
14,741,647 shares (the "Subscription Shares") to trading on AIM ("Admission").
It is expected that Admission will become effective and dealings in the
Subscription Shares will commence at 8.00 a.m. on or around 12 December 2023.

 

The Subscription 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 293,988,245 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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