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(Alliance News) - Capital Metals PLC - developing Eastern Minerals mineral sands project in Sri Lanka - Raises GBP1.3 million through placement of 16.7 million new shares at 7.5 pence per share, a 13% discount to the closing price of 8.6p on Tuesday. New shares will be 8.8% of enlarged share capital of 189.1 million shares.
Net proceeds of GBP1.1 million will be used for drilling and resource updates, engineering studies, long lead item deposits, permitting, as well as environmental and community programmes. It will also be used for offtake and financing costs, and as working capital.
Will issue 278,333 warrants to WH Ireland Ltd and 555,000 warrants to Tavira Securities Ltd, both joint book-runners for the placement, exercisable at the placing price at any time in the next three years.
Chief Executive Officer Michael Frayne commented: "We delivered a very important milestone in 2021 in the approval of the Environmental Impact Assessment. Importantly we believe the funding raised today with the existing cash on hand will be sufficient to deliver the mining license and subsequently finalise our ongoing offtake and finance discussions which we expect will fund the bulk of any capital requirements to first production."
Current stock price: 7.86 pence, down 8.6% on Wednesday
12-month change: down 56%
By Elizabeth Winter; elizabethwinter@alliancenews.com
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