Capital Metals PLC on Tuesday said it has raised £500,000 through a placing, in hopes of listing two suspended industrial mining licences.

The Sri Lanka-focused mineral sands company said it has raised £500,000 through a placing of 50.0 million new shares priced at 1 pence each. This represents a 56% discount to the closing price of 2.25p on Monday.

Shares in Capital Metals were down 47% to 1.20p each in London on Tuesday.

The placing was arranged by Tavira Financial Ltd.

The net proceeds of the placing will be used for general working capital and to help secure the lifting of the suspension of its industrial mining licences so that project development can resume.

In December, Capital Metals said two industrial mining licences issued to its subsidiary Damsila Exports Pvt Ltd have been temporarily suspended.

Chair Greg Martyr said: ‘Today’s placing is necessary to help secure the company’s ability to continue its actions to resolve the licence issues with the Geological Survey and Mines Bureau in Sri Lanka and get the project development back on track. Given our belief that the blockage arises from the actions of only a small number of bad actors, we are confident this can be achieved. Thereafter, with a memorandum of understanding in place with the world’s leading titanium dioxide pigment manufacturer to fund the project into production, the company will be very well positioned to deliver the project to the benefit of all stakeholders.’

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