(Alliance News) - Shares in Griffin Mining Ltd rose on Monday after it announced that its new mining licence, covering zone two and zone three of the Caijiaying mine, has been approved by the Chinese Ministry of Land & Natural Resources.
The stock was 16% higher at 111.00 pence on Monday in London, giving Griffin a market capitalisation of GBP191.8 million.
The new licence will allow the mining of significant additional resources.
On Tuesday last week, Griffin announced the granting of the final acceptance permit for the third stage of zone three, increasing the annual mined zinc-gold ore to 1.1 million tonnes in 2021 from 820,000 tonnes in 2020.
However, with the increased ore accessed from zone two, the total now is expected to rise to over 1.5 million tonnes per annum in 2022 as further capital development is completed.
"After eight long and frustrating years and the difficulties experienced during the Covid-19 pandemic, the 2020-2021 new year period has finally delivered what the shareholders have hoped, and patiently waited for, all this time. It is a gigantic achievement which catapults Griffin from a junior mining company into the ranks of one of the largest zinc producers, in the largest base and ferrous metals consuming market in the world," said Chair Mladen Ninkov.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Griffin Mining (GFM)