Placing to Raise £500,000

Capital Metals PLC

20 June 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.

20 June 2023

Capital Metals plc

("Capital Metals" or the "Company")

Placing to Raise £500,000

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 £500,000 through a placing (the "Placing") of 50,000,000 new ordinary shares (the "Placing Shares") at a placing price of 1p (the "Placing Price") arranged by Tavira Financial Limited (the "Broker"). The Placing has been conducted within the share capital authorities granted at the most recent Annual General Meeting on 30 September 2022.

The net proceeds of the Placing will be applied to general working capital and the Company's actions to secure the lifting of the suspension of its Industrial Mining Licences (announced on 12 December 2022) so that Project development can resume.

Greg Martyr, Chairman of Capital Metals, commented:

"Today's Placing is necessary to help secure the Company's ability to continue its actions to resolve the licence issues with the Geological Survey and Mines Bureau ("GSMB") in Sri Lanka and get the Project development back on track. Given our belief that the blockage arises from the actions of only a small number of bad actors, we are confident this can be achieved. Thereafter, with an MoU in place with the world's leading titanium dioxide pigment manufacturer to fund the Project into production, the Company will be very well positioned to deliver the Project to the benefit of all stakeholders."

Issue of Warrants

Subject to the granting of the necessary authorities at the next General Meeting of the Company to issue further securities, warrants to subscribe for 2,500,000 shares will be issued to the Broker pursuant to their engagement terms ("Warrants"). The Warrants will be exercisable at the Placing Price for a period of 3 years from the date of Admission (as defined below). Notice of a General Meeting will be announced in due course.

Admission and Total Voting Rights

Application will be made to the London Stock Exchange for admission of the Placing Shares to trading on AIM ("Admission"). It is expected that Admission will become effective and dealings in the Placing Shares will commence at 8.00 a.m. on or around 23 June 2023 (or such later date as may be agreed between the Company and the Broker, but no later than 10 July 2023).

The Placing 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 on issue will be 239,103,432 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 visit www.capitalmetals.com or contact:

Capital Metals plc Greg Martyr (Chairman) Michael Frayne (CEO)	Via Vigo Consulting
Vigo Consulting (Investor Relations) Ben Simons / Peter Jacob	[phone] [e-mail]
SPARK Advisory Partners (Nominated Adviser) Neil Baldwin / James Keeshan	[phone]
Tavira Financial Jonathan Evans / Oliver Stansfield	[phone]

About Capital Metals

Capital Metals plc is a British company listed on the London Stock Exchange and one of only a few foreign investors in Sri Lanka's mining industry. After investing US$11 million in exploration and development activities including detailed environmental assessments between 2017 and 2022, the Company's Sri Lankan subsidiary, Damsila Exports (Pvt) Limited, was issued an initial two licences in August 2022 to mine heavy mineral sands in the Eastern Province, containing industrial minerals including ilmenite, rutile, zircon, and garnet.

 

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