Capital Metals raises £0.63m to expedite Eastern Minerals Project

11th Dec 2023 13:46

(Sharecast News) - Capital Metals, a mineral sands company nearing the mine development stage at the high-grade Eastern Minerals Project in Sri Lanka, announced a successful placing to raise £0.625m on Monday.

The AIM-traded firm said the placing involved the issue of 14,705,882 new shares for 4.25p each.

It said the move followed its recent subscription on 6 December and was prompted by the interest of existing UK shareholders who expressed their intention to support Capital Metals further and retain their holdings.

The company's board determined that the placing and subscription significantly enhanced its financial position as it pursued the finalisation of an offtake financing agreement to fund the total capital spend for the Eastern Minerals Project.

It said the funds from the subscription and placing would expedite construction plans and enable exploration drilling, resource definition drilling expansion, and negotiations with key landowners for additional mining licences.

At 1231 GMT, shares in Capital Metals were down 2.42% at 4.83p.

Reporting by Josh White for Sharecast.com.