Capital Metals PLC Project Update (7262F)
March 23 2022 - 3:30AM
UK Regulatory
TIDMCMET
RNS Number : 7262F
Capital Metals PLC
23 March 2022
23 March 2022
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.
Capital Metals plc
("CMET" or the "Company")
Project Update
Capital Metals plc (AIM:CMET), a natural resources company
focused on the development of the Eastern Minerals Project located
in the Eastern Province in Sri Lanka ("the Project"), one of the
highest-grade mineral sands projects globally, is pleased to
provide an outline of its expected near-term project
milestones.
These key workstreams, which aim to demonstrate and unlock the
significant value of the Eastern Minerals Project, are as
follows:
Development Study and Project Economics
IHC Mining, a leading global mining services group with
specialist expertise in developing mineral sands operations, is
nearing completion of the Development Study for the Project. The
report will include estimated Project economics, incorporating the
significant global price of the Company's suite of heavy minerals.
The Study is being prepared to a Scoping Study level but is
expected to provide the necessary information to make a Final
Investment Decision and move promptly into the first stage of
development and production. The Company anticipates the release of
the final report by mid-April 2022.
Results from 2021 drill programme
The Company currently has a JORC-compliant resource of 17.2Mt at
17.6% Total Heavy Minerals, making it one of the highest grade
projects globally. However, this resource is based on just 10% of
the existing land package that currently makes up the Project. With
known heavy minerals throughout the tenements, the Company
undertook an auger drilling campaign in Q4 2021 to identify
additional areas of high grade and provide the basis of a
fully-funded 2022 drilling campaign, which is intended to
materially increase the existing resource. The drill samples are
continuing to be assayed by an independent laboratory. There are
currently significant global back logs in analysis of mineral
samples, however the Company is working with the laboratory to
complete the assays as soon as possible and further updates will be
made in due course.
Industrial Mining License ("IML")
Following the grant of the Environmental Impact Assessment in
November 2021, the Company is working closely with the Sri Lankan
government authorities in order to obtain the IML, which will
enable the Company to then move swiftly into commissioning the
mineral sands concentrator to enable first production of a heavy
minerals concentrate. As outlined below, senior management will be
meeting Sri Lankan officials in late March 2022 and are confident
as to the near-term issue of the IML. However, the precise timing
of the award is largely under the Sri Lankan government's
control.
Offtake and Strategic Party Discussions
Discussions continue with strategic parties with strong interest
shown by offtakers and other strategic companies in the Project. A
number of the interested parties have completed site visits and
taken samples to assess the composition of the mineral sands at the
Project. The completion of the key milestones outlined above will
enable discussions to be concluded with these parties. The Company
expects any offtake and or strategic party agreements will provide
a significant proportion of any CAPEX requirement to bring the
Eastern Minerals Project into production.
Site Visit
Both Michael Frayne (CEO) and Richard Stockwell (Technical
Manager) will be in Sri Lanka at the end of this month to meet Sri
Lankan authorities and stakeholders as well as undertake further
planning in relation to the resource drilling scheduled for later
in the year.
Following the recent placing in February 2022, the Company
confirms it has cash balances of GBP1.44m as at 28 February 2022
which the Directors believe will be sufficient to complete the
milestones as set out above.
Michael Frayne, Chief Executive Officer commented:
"I am very grateful to our team and the independent consultants
who are working diligently towards finalisation of our key
milestones before construction of our mineral sands concentrator
can begin.
"This is a highly exciting period for the Company as we look to
transition into production. We are focused on delivering these key
milestones in the near term particularly given the market for
mineral sands is in robust health with recent prices being at or
near record highs. We are seeing a substantial amount of interest
for our mineral sands product and look forward to keeping
shareholders updated in the near term."
For further information, please visit www.capitalmetals.com or
contact:
Capital Metals plc James.mahony@capitalmetals.com
Michael Frayne (CEO)
James Mahony (CFO)
SPARK Advisory Partners (Nominated
Adviser)
Neil Baldwin / James Keeshan +44 (0) 20 3368 3554
WH Ireland Limited (Joint Broker)
Harry Ansell / Katy Mitchell +44 (0) 20 7220 1666
Tavira Securities Limited (Joint
Broker)
Jonathan Evans / Oliver Stansfield +44 (0) 20 7100 5100
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