REG - Capital Metals PLC - Update re Offtake MoU

Capital MetalsAnnouncement

05/01/2024 13:30

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RNS Number : 8339Y  Capital Metals PLC  05 January 2024

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.

 

5 January 2024

 

Capital Metals PLC

 

("Capital Metals" or the "Company")

 

Update re Offtake MoU

 

Capital Metals (AIM: CMET), a mineral sands company approaching mine
development stage at the high-grade Eastern Minerals Project in Sri Lanka (the
"Project"), provides the following update on discussions to fund the Project
into production.

 

Discussions with LB Group  (https://www.lomonbillions.global/)
(002601:SHENZHEN; Market Cap: US$5.8 billion), the world's leading
manufacturer of high-performance titanium dioxide pigments and sponge, are
continuing on a non-exclusive basis following the Board of Capital Metals'
determination that it would not seek to renew exclusivity beyond 31 December
2023. This decision was made in light of additional interest received to
fund the Project into production following the positive developments in the
second half of 2023 leading to the full reinstatement of the Industrial Mining
Licences ("IMLs") announced on 1 December 2023.

 

Greg Martyr, Executive Chairman, commented:

 

"While we continue to work with LB Group to progress the Memorandum of
Understanding announced on 9 May 2023 to a definitive agreement, the
Company's opportunity set has broadened, and we determined it was in the best
interest of all stakeholders to be free to pursue additional options and
funding structures in parallel with the negotiations with LB Group to deliver
the Project in a timely manner and maximise value."

 

 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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