UK-based mineral company raises concerns with mines bureau

Capital Metals, a UK mineral resources company listed on the London Stock Exchange, said Monday it will raise 364,705 pounds ($477,471) via a subscription and that it will use funds toward accelerating actions aimed at the lifting of the suspension of its industrial mining licenses at a project in Sri Lanka.

The AIM-listed mining company said it will issue 36.5 million shares at 1 pence a share, representing a discount to Friday's closing price of 1.05 pence a share.

The company said the subscription encompassed mostly non-U.K. investors who were unable to participate in the GBP500,000 placing announced on June 20.

On June 9 the company said it had appointed an independent legal officer to investigate misappropriation within the Sri Lankan Geological Survey and Mines Bureau which had suspended its licenses on Dec. 12 at the Eastern Minerals project pending an investigation by the country's government.(Market Watch)