REG - Capital Metals PLC - Reinstatement of Industrial Mining Licences

Capital MetalsAnnouncement

01/12/2023 12:30

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231201:nRSA4318Va&default-theme=true

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 (https://capitalmetals.com/) (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 (https://www.lomonbillions.global/)
(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 (mailto:capitalmetals@vigoconsulting.com)
 SPARK Advisory Partners (Nominated Adviser)  +44 (0)20 3368 3554

 Neil Baldwin / James Keeshan
 Tavira Financial                             +44 (0)20 7100 5100

 Jonathan Evans / Oliver Stansfield

 

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 (http://www.capitalmetals.com)

 

Follow us on social media:

 

Twitter: @MetalsCapital (https://twitter.com/MetalsCapital)

LinkedIn: @Capital Metals plc (https://uk.linkedin.com/company/capitalmetals)

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 (mailto:rns@lseg.com)
 or visit
www.rns.com (http://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 (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCUAAUROSUURAA