Capital Metals PLC - London-based mineral sands explorer - Gains approval on environmental impact assessment for the development of the Eastern Minerals project in Sri Lanka.
As a result, the Coast Conversation & Coastal Resources Management Department has advised that the process is complete and has issued a development activity permit to Capital Metals.
The company can now advance third-party offtake discussions, engineering design and project finance plans. Capital Metals expects to start construction for stage one heavy minerals concentrate in the first half of 2022, then begin commercial production in the second half of 2022.
"We are delighted to have received the approval for the EIA and are very grateful for all of the work undertaken by our Sri Lankan team and consultants. The granting of the EIA is a considerable milestone for the company and demonstrates the Sri Lankan authorities' support for the Project and should enable us to meet our target of commencing commercial production in less than 12 months' time," says Chief Executive Officer Michael Frayne.
"The timing of this milestone could not be better given the recent strengthening of mineral sands pricing and a positive medium-term outlook due to economic stimulus activity as well as decreasing supply from some large existing mines," Frayne adds.
Current stock price: 12.00 pence, up 4.4% on Tuesday
Year-to-date change: down 20%
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Capital Metals (CMET)