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5 Jan 2024 13:29
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED. ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.
5 January 2024
Capital Metals PLC
("Capital Metals" or the "Company")
Update re Offtake MoU
Capital Metals (AIM: CMET), a mineral sands company approaching mine development stage at the high-grade Eastern Minerals Project in Sri Lanka (the "Project"), provides the following update on discussions to fund the Project into production.
Discussions with LB Group (002601:SHENZHEN; Market Cap: US$5.8 billion), the world's leading manufacturer of high-performance titanium dioxide pigments and sponge, are continuing on a non-exclusive basis following the Board of Capital Metals' determination that it would not seek to renew exclusivity beyond 31 December 2023. This decision was made in light of additional interest received to fund the Project into production following the positive developments in the second half of 2023 leading to the full reinstatement of the Industrial Mining Licences ("IMLs") announced on 1 December 2023.
Greg Martyr, Executive Chairman, commented:
"While we continue to work with LB Group to progress the Memorandum of Understanding announced on 9 May 2023 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."
For further information, please contact:
Capital Metals plc Greg Martyr (Executive Chairman) | Via Vigo Consulting |
Vigo Consulting (Investor Relations) Ben Simons / Peter Jacob | +44 (0)20 7390 0234 capitalmetals@vigoconsulting.com |
SPARK Advisory Partners (Nominated Adviser) Neil Baldwin / James Keeshan | +44 (0)20 3368 3554 |
Tavira Financial Jonathan Evans / Oliver Stansfield | +44 (0)20 7100 5100 |
About Capital Metals
Capital Metals is a UK company listed on the London Stock Exchange (AIM: CMET). We are developing the Eastern Minerals Project in Sri Lanka, approximately 220km east of Colombo, containing industrial minerals including ilmenite, rutile, zircon, and garnet. The Project is one of the highest-grade mineral sands projects globally, with potential for further grade and resource expansion. In 2022, a third-party Preliminary Economic Assessment provided a Project NPV of US$155-235m based on existing resources, with further identified optimisation potential. We are committed to applying modern mining practices and bringing significant positive benefits to Sri Lanka and the local community. We expect over 300 direct new jobs to be created and over US$130m in direct government royalties and taxes to be paid.
Visit our website:
www.capitalmetals.com
Follow us on social media:
Twitter: @MetalsCapital
LinkedIn: @Capital Metals plc
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
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