REG - Capital Metals PLC - Update re Project Funding

Capital MetalsAnnouncement

30/05/2024 10:15

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RNS Number : 4576Q  Capital Metals PLC  30 May 2024

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.

 

30 May 2024

 

Capital Metals PLC

 

("Capital Metals" or the "Company")

 

Update re Project Funding

 

Capital Metals (AIM: CMET), a mineral sands company approaching mine
development stage at the high-grade Eastern Minerals Project in Sri Lanka (the
"Project"), is pleased to confirm that legal agreements are well advanced for
Sheffield Resources Limited (ASX: SFX) ("Sheffield") to acquire a 50% interest
in the Project in consideration for providing development capital by way of
joint venture project equity. Whilst the legal agreements will not be
completed in May, Capital Metals expects the transaction to close shortly. A
further announcement will be made only when all requisite approvals have been
received and legal and regulatory documents have been finalised and signed, or
when required by regulatory obligations.

 

 For further information, please visit www.capitalmetals.com
(http://www.capitalmetals.com) or contact:

 Capital Metals plc                           Via Vigo Consulting

 Greg Martyr (Executive Chairman)
 Vigo Consulting (Investor Relations)         +44 (0)20 7390 0234

 Ben Simons / Peter Jacob                     capitalmetals@vigoconsulting.com (mailto:capitalmetals@vigoconsulting.com)
 SPARK Advisory Partners (Nominated Adviser)  +44 (0)20 3368 3550

 Neil Baldwin / James Keeshan / Adam Dawes
 Tavira Financial                             +44 (0)20 7100 5100

 Jonathan Evans / Oliver Stansfield

 

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 (http://www.capitalmetals.com)

 

Follow us on social media:

 

X (formerly Twitter): @MetalsCapital (https://twitter.com/MetalsCapital)

LinkedIn: @Capital Metals plc (https://uk.linkedin.com/company/capitalmetals)

 

About Sheffield Resources

 

Sheffield Resources is listed on the Australian Securities Exchange with a
market capitalisation of approximately A$218 million. Sheffield recently
commissioned its flagship A$484 million Thunderbird Mineral Sands Project.
Thunderbird is a 50/50 joint venture between Sheffield and Yansteel and is one
of the largest and highest-grade mineral sands discoveries in the last 30
years. Thunderbird has recently achieved practical completion and made its
maiden shipment of product in January 2024.

 

In February 2023, Sheffield executed a binding agreement with an option to
acquire up to 20% of Rio Grande Mineração S/A, which owns and operates the
South Atlantic Project in Southeast Brazil.

 

For more information on Sheffield Resources, visit
www.sheffieldresources.com.au (http://www.sheffieldresources.com.au) .

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