Law firm Hill Dickinson has recently advised AIM-listed client Capital Metals Plc (AIM:CMET) on a placing which raised gross proceeds of £1.25 million from investors. WH Ireland and Tavira Securities acted as joint brokers in relation to the placing.
Capital Metals’ focus is to explore, develop, and ultimately become a producer of high-grade mineral sands for the international market and at present it holds two exploration licences in Sri Lanka.
Capital Metals undertook the placing to progress its corporate and operational strategy and the net proceeds will therefore be applied towards: Drilling and subsequent Resource update, engineering studies and long lead item deposits, permitting, environmental and community programmes, offtake and financing costs and general working capital.
Sam Hudson, legal director, and Amelia Chung, trainee solicitor, of Hill Dickinson’s Corporate team, advised Capital Metals on the transaction.
We delivered a very important milestone in 2021 in the approval of our environmental impact assessment. Importantly, we believe the funding raised with the existing cash on hand will be sufficient to deliver the mining licence and subsequently finalise our ongoing offtake and finance discussions which we expect will fund the bulk of any capital requirements to first production. With the completion of the development study due this quarter and further drilling planned as a result of this fundraising, we believe it is a very exciting time for the company. As mineral sands prices continue to strengthen the company is in a good position to generate sustained long-term growth. We welcome new shareholders to the register, from this oversubscribed placing, as we look forward to a busy and productive year. Thank you to Sam and Amelia at Hill Dickinson for supporting us in this transaction.Michael Frayne
Chief Executive Officer, Capital Metals