(Alliance News) - Capital Metals PLC on Monday said it has launched a subscription to raise over GBP360,000 from mainly non-UK investors, in part to help lift suspensions on its mining licences and advance an environmental impact study.
The London-based, Sri Lanka-focused mineral sands mining company said it intends to raise gross proceeds of GBP364,705 through a subscription of 36.5 million shares at a price of 1 pence per share.
Shares in Capital Metals rose 4.8% to 1.10p each on Monday morning in London.
Capital Metals said the subscription mainly comprises non-UK investors, who could not participate in a GBP500,000 placing announced last month.
The company said multiple directors also participated in the subscription, including Chair Greg Martyr, who subscribed for 3.0 million shares. Chulu Holdings Pty Ltd, of which former Chief Executive Officer Michael Frayne is a beneficiary, subscribed for 1.0 million.
Capital Metals said it intends to use the subscription proceeds in part to grow general working capital.
This is alongside accelerating the lifting of the suspension of its industrial mining licences in the northern area of its currently sole project, Eastern Minerals east of Colombo, Sri Lanka.
Finally, it said it will also use the proceeds to advance the environmental impact study at EL199 in EM's southern area, which holds around 60% of the project's total mineral sands resource.
The subscription shares are expected to be admitted for trading on AIM in London on or around Friday.
By Emma Curzon, Alliance News reporter
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Capital Metals (CMET)