Deal alert: Equatorial Palm Oil plc
PKF supports reverse takeover and re-admission to trading on AIM
We are delighted to have supported Equatorial Palm Oil plc (renamed Capital Metals plc) which has been admitted to the AIM market of the London Stock Exchange following its reverse takeover of a 99% interest in BVI company, Capital Metals Limited.
Alongside the acquisition and readmission, CML has raised £2 million through an oversubscribed share placing with institutional and other investors.
Capital Metals Limited was incorporated in 2015 to acquire licences prospective for mineral sands in Sri Lanka (Project). The Project has an established JORC resource of 17.2Mt, of which 84% is in the measured and indicated categories, with an average grade of 17.6% total heavy minerals (THM), making it one of the highest-grade deposits in the global peer group.
Less than 5% of the Project area has been drilled to date and the JORC Resource is from surface to a depth of three metres. Exploration work has shown continuation beyond three metres and also returned grades in excess of 26% THM. CML expects to be able to upgrade the size of the resource in due course. Additional adjoining exploration licences are also under application.
Following completion of the acquisition and the placing, CML’s shares were readmitted to trading on 13 January 2021, with the ticker ‘AIM:CMET’ and a market capitalisation on admission of £20.6 million
PKF acted as reporting accountant on the transaction and the Capital Markets team included Dominic Roberts, Adam Humphreys and Lauren Haslam.
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