LONDON (ShareCast) - (Sharecast News) - Capital Metals announced on Tuesday that it has secured the remaining $1.175m under the Ambeon Option, completing the full $2m investment package announced in May and leaving the company fully funded through to a final investment decision at its high-grade Taprobane Minerals Project in Sri Lanka.
The AIM-traded firm said the remaining funding was coming via the issue of 31,886,025 new shares at 2.75p each after Ambeon exercised its right to assign the balance of its option to third-party investors.

It said the latest tranche followed the partial exercise of the option in August.

Sheffield Resources, the 50% owner of the Thunderbird mineral sands mine in Australia, had also indicated it would exercise its right to maintain its 10% holding in Capital Metals by subscribing for additional shares on the same terms.

"We are delighted with this outcome, which reinforces the confidence in and momentum behind the project in Sri Lanka," said executive chairman Greg Martyr.

"Ambeon and its assignees have achieved their maximum $4m strategic investment which, together with the ongoing support from Sheffield, will see the company comfortably funded through to FID.

"We are now focused on finalising the debt and equity arrangements with the assistance of the Ambeon team for the stage one project capital expenditure."

The new shares from the latest subscriptions were expected to begin trading on AIM on 12 September, taking Capital Metals' total share capital to 484,502,022 ordinary shares.

Ambeon would hold 12.3% of the enlarged share capital following admission.

At 1517 BST, shares in Capital Metals were up 3.87% at 3.22p.

Reporting by Josh White for Sharecast.com.

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