Capital Metals PLC Placing to Raise GBP625,000 (3131W)
December 11 2023 - 2:00AM
UK Regulatory
TIDMCMET
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 GBP625,000
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 GBP625,000 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
SPARK Advisory Partners (Nominated
Adviser)
Neil Baldwin / James Keeshan +44 (0)20 3368 3554
Tavira Financial
Jonathan Evans / Oliver Stansfield +44 (0)20 7100 5100
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
Follow us on social media:
Twitter: @MetalsCapital
LinkedIn: @Capital Metals plc
Market Abuse Regulation (MAR) Disclosure
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been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this announ
cement.
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