Capital Metals PLC Update re Offtake MoU (8339Y)
January 05 2024 - 8:29AM
UK Regulatory
TIDMCMET
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
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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 (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
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
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