Capital Metals PLC (AIM: CMET), a UK-listed mineral sands exploration and development company, has announced a significant strategic investment agreement with Ambeon Capital PLC, one of Sri Lanka’s leading diversified conglomerates. The investment is set to provide up to US$4 million in funding, supporting the advancement of Capital Metals’ flagship Taprobane Mineral Sands Project in Sri Lanka.
Under the terms of the agreement, Ambeon Capital will make an initial investment of US$2 million by subscribing for 59.7 million new ordinary shares at 2.5 pence per share, resulting in a 14.1% stake in Capital Metals. In addition, Ambeon and its nominated investors have been granted a 45-day option to invest a further US$2 million at a slightly higher price of 2.75 pence per share, which could increase their ownership to 23.5% of the company’s enlarged share capital.
The two companies have also signed a non-binding Memorandum of Understanding (MoU) that sets out a collaborative framework for the development and funding of the Taprobane Project. The MoU outlines plans for Ambeon, along with other investors, to invest approximately US$10 million in equity into Capital Metals’ Sri Lankan subsidiary, Redgate Lanka (Pvt) Limited, in exchange for a 15% stake. Furthermore, Ambeon will arrange approximately US$10 million in corporate debt financing for Redgate. These funds are expected to be sufficient to complete the Stage 1 development of the project and move it into a self-funding phase.
Capital Metals’ Executive Chairman, Greg Martyr, described the partnership with Ambeon as a significant milestone for the company. He noted that the involvement of a respected Sri Lankan entity demonstrates strong local support for the project and adds considerable value in navigating in-country approvals and stakeholder engagement. He highlighted that Ambeon’s decision to invest followed extensive due diligence, including consultations with government stakeholders, indicating confidence in the project’s viability and strategic importance.
Ambeon Capital’s Chief Executive Officer, Dr. Sajeeva Narangoda, said the transaction aligns with Ambeon’s vision of creating long-term value across key sectors in Sri Lanka. He expressed enthusiasm about contributing to the development of the island’s mineral sector and helping unlock its full potential for inclusive economic growth.
To complement the institutional investment, Capital Metals plans to launch a retail offer of up to £300,000 via the Winterflood Retail Access Platform (WRAP), allowing existing shareholders to participate on the same terms as Ambeon. This initiative aims to ensure retail investors are not diluted and can benefit equally from the capital raise.
In a further show of confidence, Capital Metals’ largest institutional shareholder, Sheffield Resources Limited, which owns 50% of the Thunderbird mineral sands mine in Western Australia, will invest an additional US$267,000 to maintain its 10% shareholding in the company.
The funds raised from Ambeon, along with any proceeds from the retail offer and Sheffield’s additional investment, will be used primarily to secure the necessary regulatory approvals to reach Final Investment Decision (FID). Remaining funds will go toward working capital and capital expenditure for Stage 1 of the Taprobane Project, which includes a 165-tonne per hour plant designed to produce 125,000 tonnes per annum of high-grade heavy mineral concentrate.
Following the completion of the initial subscription, Ambeon will have the right to appoint a nominee director to Capital Metals’ board, subject to standard due diligence and regulatory checks. The two parties have also entered into a Relationship Agreement to ensure proper governance and alignment of shareholder interests.
Admission of the new shares issued under the Ambeon and Sheffield subscriptions to trading on AIM is expected to occur on or around 4 June 2025. Following admission, Capital Metals will have 412,835,261 ordinary shares in issue, which will be used as the benchmark for any shareholder disclosure requirements under applicable regulatory rules.
This strategic investment and collaborative development plan mark a pivotal step forward for Capital Metals and its efforts to bring Sri Lanka’s high-potential mineral sands resources into production, backed by both international mining expertise and strong local partnership.
