Last checked at 10 Feb 2023 07:00
10 February 2023
Capital Metals plc
("Capital Metals", the "Company" or the "Group")
Update re Temporary Suspension of Industrial Mining Licences
Capital Metals (AIM: CMET), a mineral sands company approaching mine development stage at the high-grade Eastern Minerals Project in Sri Lanka (the "Project"), provides the following update regarding the temporary suspension of the Company's Industrial Mining Licences ("IML(s)") announced on 12 December 2022.
Following receipt of the notice from Sri Lanka's Geological Survey and Mines Bureau ("GSMB") to the Company's Sri Lankan IML-holding subsidiary, Damsila Exports Pvt Limited ("Damsila"), the Company has been in frequent and productive communication with senior GSMB and other departmental officials in Colombo seeking to resolve concerns around the ownership structure of Damsila. While the Company's legal position is that its ownership structure conforms with the Sri Lankan statutory requirements, the Board's objective is to derive a pragmatic solution to satisfy the GSMB that the spirit of the law requiring local ownership of mining and primary processing activities is reflected. Processes are underway, in cooperation with the GSMB, to amend the Group's corporate structure in order to have the temporary suspension of the IMLs lifted as soon as possible. Further updates will be announced in due course.
Michael Frayne, Chief Executive Officer, commented:
"Whilst we were advised that our ownership structure is legally correct, the overarching objectives are to satisfy the GSMB that the spirit of the law is reflected in our ownership structure and have the IMLs promptly reinstated. We believe this can be achieved in a timely manner and without materially impacting the Company's economic value in the Project. In the meantime, we are encouraged by the discussions with prospective offtakers and local strategic partners which have continued to advance positively."
For further information, please visit www.capitalmetals.com or contact:
Capital Metals plc Michael Frayne (CEO) James Mahony (CFO) | Via Vigo Consulting |
Vigo Consulting (Investor Relations) Ben Simons / Peter Jacob | +44 (0)20 7390 0234 capitalmetals@vigoconsulting.com |
SPARK Advisory Partners (Nominated Adviser) Neil Baldwin / James Keeshan | +44 (0)20 3368 3554 |
Tavira Financial Jonathan Evans / Oliver Stansfield | +44 (0)20 7100 5100 |
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.