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(Sharecast News) - Capital Metals said in an update on Tuesday that it has agreed a two-week extension to the option period granted to Ambeon Capital, allowing further investment in the company until 2 September.
The AIM-traded mineral sands developer, which is advancing the high-grade Taprobane Minerals Project in Sri Lanka, said the Ambeon Option permitted Ambeon or its third-party assignees to invest up to an additional $2m at 2.75p per share.
To date, $825,000 had been subscribed under the option, and the board said it expected the full balance was likely to be taken up.
As Ambeon is a substantial shareholder, the extension was considered a related party transaction under the AIM rules.
Capital Metals said its independent directors, after consulting with its nominated adviser Strand Hanson, believed the terms of the extension were "fair and reasonable insofar as the company's shareholders are concerned".
At 1059 BST, shares in Capital Metals were up 6.67% at 3.2p.
Reporting by Josh White for Sharecast.com.
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