THIS 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.
15 August 2024
Capital Metals PLC
("Capital Metals" or the "Company")
Drilling Update
Capital Metals (AIM: CMET), a mineral sands company approaching mine development stage at the high-grade Eastern Minerals Project in Sri Lanka (the "Project"), announces it has elected to postpone its drilling programme to accommodate a broader request by the Geological Survey and Mines Bureau ("GSMB") to reduce operations on government-controlled land until the Sri Lankan presidential elections on 21 September 2024.
The purpose of the drilling is to increase the resource, as well as to help with design and engineering, mine planning and to obtain greater geological confidence in the proposed mining areas. All approvals remain in place and equipment will remain on or near site ahead of recommencement of activities.
Greg Martyr, Executive Chairman of Capital Metals, commented:
"While we are entitled to proceed immediately, given the much improved and productive relationship with the GSMB, the Company believes it is in its interests to demonstrate goodwill and acquiesce to the department's request for a short postponement."
For further information, please visit www.capitalmetals.com or contact:
| Capital Metals plc Greg Martyr (Executive Chairman) | Via Vigo Consulting |
| Vigo Consulting (Investor Relations) Ben Simons / Peter Jacob | +44 (0)20 7390 0234 |
| SPARK Advisory Partners (Nominated Adviser) Neil Baldwin / James Keeshan / Adam Dawes | +44 (0)20 3368 3550 |
| Tavira Financial Jonathan Evans / Oliver Stansfield | +44 (0)20 7100 5100 |
About Capital Metals
Capital Metals is a UK company listed on the London Stock Exchange (AIM: CMET). We are developing the Eastern Minerals Project in Sri Lanka, approximately 220km east of Colombo, containing industrial minerals including ilmenite, rutile, zircon, and garnet. The Project is one of the highest-grade mineral sands projects globally, with potential for further grade and resource expansion. In 2022, a third-party Preliminary Economic Assessment provided a Project NPV of US$155-235m based on existing resources, with further identified optimisation potential. We are committed to applying modern mining practices and bringing significant positive benefits to Sri Lanka and the local community. We expect over 300 direct new jobs to be created and over US$130m in direct government royalties and taxes to be paid.
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LinkedIn: @Capital Metals plc
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