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(Alliance News) - Capital Metals PLC on Monday said that it has raised GBP625,000 via a placing of 14.7 million new shares at 4.25 pence each, as a follow-on to a subscription last week.
Last Wednesday, the Sri Lanka-focused mineral sands company said it had raised GBP626,520, about AUD1.2 million, through a direct subscription for 14.7 million new shares at 4.25p each in Australia.
Following the announcement, Capital Metals was approached by existing shareholders in the UK, who "wished to further support the company and maintain their holdings".
The two share issues have put Capital Metals on a "materially stronger footing" as it looks to wrap up an offtake financing agreement to fund project capital expenditure.
The extra funds, Capital Metals explained, will help accelerate planned construction, while also making it possible to conduct exploration drilling in conjunction with resource definition drilling.
Capital Metals shares were trading 1.6% lower at 4.87p each in London on Monday morning. The company has a GBP13.6 million market capitalisation.
By Holly Beveridge, Alliance News reporter
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