(Sharecast News) - Capital Metals updated the market on discussions aimed at securing funding for the Eastern Minerals Project in Sri Lanka on Friday.
The AIM-traded company, which is nearing the mine development stage at the high-grade project, had been in ongoing discussions with LB Group, a leading manufacturer of high-performance titanium dioxide pigments and sponge.
It said the talks with LB Group were continuing on a non-exclusive basis, as Capital Metals'
board had chosen not to renew exclusivity beyond 31 December.
The decision was motivated by the increased interest expressed by potential investors to finance the project into production.
Capital Metals siad the heightened interest came in the wake of positive developments in the second half of 2023, culminating in the full reinstatement of the industrial mining licences, announced on 1 December.
The firm said it was committed to advancing the Eastern Minerals Project and securing the necessary funding to propel it into production.
"While we continue to work with LB Group to progress the memorandum of understanding announced on 9 May to a definitive agreement, the company's opportunity set has broadened, and we determined it was in the best interest of all stakeholders to be free to pursue additional options and funding structures in parallel with the negotiations with LB Group to deliver the project in a timely manner and maximise value," said executive chairman Greg Martyr.
At 1414 GMT, shares in Capital Metals were down 18.07% at 3.4p.
Reporting by Josh White for Sharecast.com.
Capital Metals (CMET)