2nd Dec 2024 15:22
(Alliance News) - Capital Metals PLC said on Monday it has made significant progress in its high-grade Eastern Minerals project in Sri Lanka, including reduced costs, key service agreements, and funding discussions aimed at expediting the project.
Shares in Capital Metals were up 19% at 1.90 pence each in London on Monday afternoon.
The mineral sands exploration company, which is focused on Sri Lankan projects, said it has reduced the estimated stage 1 capital expenditure by one-third to USD20.9 million through process optimisations.
The initial production phase is projected to yield 125,000 tonnes per year of high-grade heavy mineral concentrate, with the potential for further resource expansion following drilling.
Capital Metals has partnered with Mineral Technologies Group Ltd, an Australian mineral processing specialist, and Sri Lanka's Access Group, to enhance the project's engineering and design. Capital Metals said these agreements aim to incorporate local expertise and potentially fabricate key equipment within Sri Lanka.
Executive Chair Greg Martyr said: "The team has worked diligently with consultants across all aspects of project delivery to arrive at a materially reduced capex estimate for the first stage of production of USD20.9 million.
"Based on ongoing discussions, we are confident this quantum is eminently fundable, predominantly through prepayments with offtakers, vendor financiers, and potential local Sri Lankan project partners, aligned with an objective to make the final investment decision in the second quarter of next year."
Capital Metals also said it plans to restart drilling activities now that Sri Lanka's parliamentary elections have concluded, aiming to increase resources and refine mine plans.
By Eva Castanedo, Alliance News reporter
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