Business
Offtake MoU Signed
Offtake MoU Signed.
About this update from Capital Metals Plc
[{"type":"text","content":"\n\nTHIS 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.\n \n9 May 2023\n \nCapital Metals plc\n \n(\"Capital Metals\" or the \"Company\")\n \nOfftake MoU Signed\n \nAgreement with world's No. 1 manufacturer of high-performance titanium dioxide pigments to fund the Eastern Minerals Project into production\n \nCapital 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 announce that the Company has signed a Memorandum of Understanding (\"MoU\") with LB Group (002601:SHENZHEN; Market Cap: US$5.9 billion), the world's leading manufacturer of high-performance titanium dioxide pigments and sponge, to fund the Project into production.\n \nMoU Highlights\n \n\n\n\n\n\n\n \n\n\n\n\nLB Group is seeking to invest in overseas assets to provide ilmenite feedstock for its pigment and sponge operations in China.\n\n\n\n\n\n\n \n\n\n\n\nParties to form a 50/50 Joint Venture across all Capital Metals’ interests in the Project for the development and operation of the Project (the “JV”).\n\n\n\n\n\n\n \n\n\n\n\nLB Group to fully fund the Project as defined by the IHC Mining independent Development Study Report and Preliminary Economic Assessment announced in May 2022 (“PEA\"), which is estimated to cost US$81 million. The JV will fund any expansion of the Project beyond the PEA parameters on a 50/50 basis.\n\n\n\n\n\n\n \n\n\n\n\nAll funding to be by way of equity on a staged basis to achieve 1.65 million tonnes per annum mining rate capacity and processing to final products, with LB Group able to apply its share of profits towards its funding commitment until the agreed capacity is achieved.\n\n\n\n\n\n\n \n\n\n\n\nCapital Metals to start earning its share of JV profits as soon as shipments begin, which could be within 12 months of the start of construction.\n\n\n\n\n\n\n \n\n\n\n\nLB Group will guarantee 100% of the offtake of heavy mineral concentrate and ilmenite fo...