Capital Metals PLC Reinstatement of Industrial Mining Licences (4318V)
December 01 2023 - 7:18AM
UK Regulatory
TIDMCMET
RNS Number : 4318V
Capital Metals PLC
01 December 2023
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED
UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014
WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL)
ACT 2018, AS AMENDED. ON PUBLICATION OF THIS ANNOUNCEMENT VIA A
REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO
BE IN THE PUBLIC DOMAIN.
1 December 2023
Capital Metals plc
("Capital Metals" or the "Company")
Reinstatement 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"), is pleased to announce that the
Geological Survey and Mines Bureau ("GSMB") has today formally
reinstated Industrial Mining Licences 16236 and 16237 (the "IMLs")
to the Company's Sri Lankan subsidiary, Damsila Exports (Pvt)
Limited.
The IMLs had previously been subject to a suspension and notice
of cancellation until a statutory appeal ruling, announced on 19
October 2023, ordered them to be reissued.
Key points:
-- The IMLs were granted for an initial 10-year period from August 2022
-- The IMLs were granted pursuant to the approval of an
Environmental Impact Assessment ("EIA") in November 2021
-- The IMLs cover an initial 16 hectares of land for the
commencement of mining activities, including some of the Project's
highest-grade resources with grades up to 25% Total Heavy
Minerals
-- The Coast Conservation and Coastal Resources Management
Department ("CCD") in Sri Lanka has today also issued an extension
to its permit to mine pursuant to the EIA approval in November
2021, evidencing further in-country support for the Project
-- The reinstatement of the IMLs is a key milestone in moving
from the previously announced Memorandum of Understanding to the
finalisation of negotiations with LB Group (002601:SHENZHEN; Market
Cap: US$6 billion), the world's No. 1 manufacturer of
high-performance titanium dioxide pigments, to unlock the funding
for the total capital expenditure for the Project
Greg Martyr, Executive Chairman, commented:
"The reinstatement of the IMLs marks the culmination of over a
year's unrelenting efforts to overcome interference by a minority
of bad actors who no longer hold their offices. We are working
towards execution of the Joint Venture with LB Group to fund the
total capital expenditure for one of the highest-grade heavy
mineral sands projects globally, with additional upside not yet
included in the resource. This will be a significant project to
kick-start much needed foreign investment in Sri Lanka's heavy
mineral sands mining and export industry which could be a major
contributor to rebuilding the economy.
We would like to thank the new team at the GSMB for their
cooperation in what has been a challenging period after many
changes in numerous related government departments in Sri Lanka. We
look forward to working constructively with them, as well as the
Board of Investment, the CCD, and all other stakeholders, as we
progress mine construction planning."
For further information, please contact:
Capital Metals plc Via Vigo Consulting
Greg Martyr (Executive Chairman)
Vigo Consulting (Investor Relations) +44 (0)20 7390 0234
Ben Simons / Peter Jacob 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
About Capital Metals
Capital Metals is a UK company listed on the London Stock
Exchange (AIM: CMET). We are developing the Eastern Minerals
Project in Sri Lanka, approximately 220km east of Colombo,
containing industrial minerals including ilmenite, rutile, zircon,
and garnet. The Project is one of the highest-grade mineral sands
projects globally, with potential for further grade and resource
expansion. In 2022, a third-party Preliminary Economic Assessment
provided a Project NPV of US$155-235m based on existing resources,
with further identified optimisation potential. We are committed to
applying modern mining practices and bringing significant positive
benefits to Sri Lanka and the local community. We expect over 300
direct new jobs to be created and over US$130m in direct government
royalties and taxes to be paid.
Visit our website:
www.capitalmetals.com
Follow us on social media:
Twitter: @MetalsCapital
LinkedIn: @Capital Metals plc
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCUAAUROSUURAA
(END) Dow Jones Newswires
December 01, 2023 07:18 ET (12:18 GMT)
Capital Metals (LSE:CMET)
Historical Stock Chart
From Jun 2024 to Jul 2024
Capital Metals (LSE:CMET)
Historical Stock Chart
From Jul 2023 to Jul 2024