Equatorial Palm Oil PLC - AIM-listed cash shell - Says reverse takeover target Capital Metals Ltd reports interim results. For six months ended September 30, Capital Metals posts loss of USD353,588, narrowed from USD508,704 last year. Equatorial Palm Oil notes that reverse takeover accepted by 98% of CML shareholders. Capital Metals is developing a mineral sands project in Sri Lanka, which has a JORC resource estimate of 17.2 million tonnes at 17.6% of total heavy minerals.
Chair Greg Martyr says: "We are very pleased with the positive reception the proposed acquisition has received, as evidenced by the success of the oversubscribed placing, as well as acceptances from over 98% of existing CML shareholders to the offer, and the overwhelming support from EPO shareholders to date. Following approval at the upcoming general meeting of EPO on 11 January 2021, we will look to move through the final key permitting stages and expect to provide an update towards the end of Q1 2021. Project is one of the highest grade mineral sands deposits globally and also benefits from a low capital cost requirement to production. These contribute to an attractive, high margin development. As we progress in 2021, we look forward to publishing further details on the expected economics and profitability of the project, as well as providing operational updates as we target moving towards the commencement of construction in H2 2021 and first production in 2022."
Current stock price: 0.75 pence
Year-to-date change: down 2.6%
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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