Capital, the mining services company, on November 20 announced a proposed placing to raise gross proceeds of approximately £31 million, via the issue of new common shares it said to bring “additional balance sheet capacity to support the Group’s growth strategy as it seeks to capitalise on a highly favourable demand environment and a tightening equipment market.” It announced the successful raising of the total the following day.
Following a sustained period of robust commodity prices, a surge in capital markets activity within the sector and increased exploration budgets across its major customers and the sector in general, the Group said it anticipates increased demand for its services across its operating divisions into 2026 and beyond. The enhanced liquidity position will enable the Group to rapidly pursue and capitalise on growth opportunities as they arise.
Capital says it has been investing materially in expanding its service offering and geographical footprint to include 134 drill rigs, 26 labs and a productive mining fleet of 78 spread across 16 countries. “The Group’s services business remains very active as evidenced by the long history of regular contract renewals, consistent utilisation rates and consistent investment in fleet modernisations, all while maintaining an exceptional track record in safety performance. This has enabled the Group to build a blue-chip customer base which includes some of the world’s leading mining companies such as Barrick, AngloGold Ashanti, Perseus, Ma’aden, Fortescue Metals Group and Nevada Gold Mines.”
Following a sustained period of supportive commodity prices and heightened mining financing activity during 2025, the Group’s existing and prospective customer base has emerged with stronger balance sheets and an enhanced ability to accelerate exploration spending and investment in growth projects.
It added: “Given the Group’s high utilisation rates of its existing equipment, as well as a tightening equipment market, the Board has determined that increased balance sheet capacity is prudent to enable the company to capitalise on this market dynamic and move quickly on opportunities being presented to it. In the context of a highly favourable demand environment and a tightening equipment market, the indicative use of proceeds will be used to fund additional equipment purchases for potential and future contract wins in the drilling and mining business, (approximately US$25 million), funding laboratory builds and related equipment purchases for MSALABS (approximately US$10 million), with the balance used for general working capital purposes.”
