Hill Dickinson has recently advised AIM-listed client Capital Metals plc on receipt of a strategic investment of £1.25 million from ASX-listed Sheffield Resources Limited in return for 10% of the issued shares of Capital Metals.
The Hill Dickinson team advising Capital Metals on the transaction was led by partner Sam Hudson.
Capital Metals (AIM: CMET) is a mineral sands company approaching mine development stage at the high-grade Eastern Minerals Project in Sri Lanka. Pursuant to the investment, Capital Metals has also granted Sheffield Resources an option to make a further £844,000 investment into it over the next 12 months, as well as a 60-day co-exclusivity period with another investor to agree terms for the acquisition of up to 50% of its interests in the Eastern Minerals Project. The final terms and structure, and the relevant funding mechanisms, will be subject to further legal, tax and financial due diligence being undertaken by Sheffield Resources over the next 60 days to ensure the optimal outcome, as well as receipt of any other regulatory approval required.
We would like to thank Hill Dickinson for their swift and attentive support on this transaction.“Greg Martyr
Executive Chairman of Capital Metals
Commenting, Greg Martyr, executive chairman of Capital Metals, said: “I am delighted to welcome Sheffield as a material and strategic investor in the company. In addition to injecting capital, they bring world-class industry expertise in the development of mineral sands projects as evidenced at Thunderbird in Western Australia. Their acquisition of a 10% stake in the company and interest in potentially earning 50% at the project level by contributing project funding to support the operations into production and cashflow is a reflection of the quality of the Project. I look forward to providing further updates as appropriate.
“We would like to thank Hill Dickinson for their swift and attentive support on this transaction.“