(Alliance News) Capital Metals PLC on Wednesday reported a resilient performance in its latest half year, despite work for "the best part of a year" being impeded by the Sri Lankan government's "illegal" actions.
The Sri Lanka-focused mineral sands company also announced that it had raised GBP626,520, approximately AUD1.2 million, through direct subscription for 14.7 million new shares at 4.25 pence each.
Capital Metals said the vast majority of the subscription investment came from an existing Australian shareholder holding over 5% of its issued share capital; the rest was provided by one other investor. The proceeds, it said, will enable the acceleration of mine construction planning activities at its flagship Eastern Minerals project in east Sri Lanka.
Capital Metals meanwhile reported a USD407,632 pretax loss for the six months that ended on September 30, widened from USD378,188 the year before.
During the period, Capital Metals was kept busy working to resolve the suspension of its industrial mining licences by the Sri Lankan government's Geological Survey & Mines Bureau.
After a period of legal proceedings and lobbying, in mid-October the Secretary to the Ministry of Environment determined that the cancellation of the licences was incorrect, and ordered the GSMB to reissue them. The licences were reinstated on December 1.
"The illegal actions of the GSMB cost us the best part of a year, and dilution at undesirable levels," commented Executive Chair Greg Martyr. "We have come through that experience intact and with extraordinary upside potential ahead of us...we have one of the highest-grade heavy mineral sands projects globally, with additional upside not yet included in the resource that we expect to define from extensive undrilled lateral and depth extension.
"We have a very exciting period ahead with mine construction planning underway."
Shares in Capital Metals were trading 5.0% higher at 5.25 pence on Wednesday afternoon in London.
By Emma Curzon, Alliance News reporter
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Capital Metals (CMET)