Sheffield Resources Limited (ASX: $SFX) has entered into a share subscription agreement with Capital Metals Plc (AIM: CMET), acquiring 34,500,000 ordinary shares for £1,250,000. This investment will give Sheffield approximately 10% ownership of Capital Metals, with an option to increase it to around 14% by acquiring a further 17,250,000 shares for £843,750. Additionally, Sheffield may appoint one nominee director to the Board of Capital Metals and has secured funding terms for potential project development.
Sheffield is excited about the investment in Capital Metals, which presents an opportunity to expand its portfolio and potentially acquire up to 50% of the Eastern Minerals Project in Sri Lanka. The Company sees this as a strategic move to diversify its mineral sands assets and aims to leverage its position to contribute to the development of the project.
Sheffield Resources' investment in Capital Metals plc demonstrates its commitment to expanding its global mineral sands portfolio. The acquisition of 10% ownership in Capital Metals, with an option for a further 4%, aligns with Sheffield's goal of generating cash returns and growth from its mineral sands assets. The potential project acquisition in Sri Lanka further underscores Sheffield's ambitions to secure long-term, high-quality mineral resources. The Company's outlook remains focused on leveraging its existing cash reserves to fund the initial investment and potential project development, positioning itself for future growth and value creation.