Business
Strategic Investment & Project Funding Updates
Strategic Investment & Project Funding Updates.
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 \n15 March 2024\n \nCapital Metals PLC\n \n(\"Capital Metals\" or the \"Company\")\n \nStrategic Investment by Mineral Sands Producer\n&\nProject Funding Updates\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 the strategic acquisition of 10% of the Company by Sheffield Resources Limited (ASX: SFX) (\"Sheffield\"), the 50% owner of the Thunderbird mineral sands mine in Western Australia (\"Sheffield Investment\").\n \nPursuant to the Sheffield Investment, Capital Metals has granted Sheffield co-exclusivity with LB Group (002601:SHENZHEN) for either party to conclude a transaction within 60 days to provide funding to support the development of the Project into production in exchange for up to a 50% interest in the Project. \n \nHighlights\n \n· Sheffield Investment of £1.25 million for 10% of the Company's issued share capital at 3.623p per share\n \n· 12-month option for Sheffield to invest a further £0.844 million at 4.891p per share\n \n· Outline terms agreed with Sheffield to contribute funding to support the Project into production in exchange for up to a 50% interest in the Project subject to, inter alia, due diligence over a 60-day period\n \n· Continued positive engagement with LB Group in parallel with Sheffield - either party may individually conclude a funding transaction with the Company within 60 days\n \nSheffield Investment\n \nSheffield has entered into an agreement with the Company to subscribe for 34,500,000 new ordinary shares at an issue price of 3.623p per ordinary share, representing a premium of approximately 25% to the 30-day volume-weighted average price (\"VWAP\") and approxim...