REG - Capital Metals PLC - Response to Reports of Minister's Expulsion

Capital MetalsAnnouncement

10/10/2023 07:00

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RNS Number : 6143P  Capital Metals PLC  10 October 2023

10 October 2023

Capital Metals plc

("Capital Metals" or the "Company")

 

Response to Reports of Minister's Expulsion

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 note that the Supreme Court in Sri Lanka has
determined a decision by the Sri Lanka Muslim Congress to expel Minister
Naseer Ahamad from its party membership to be legally valid. As a result of
his expulsion, Mr Ahamad has lost his parliamentary seat and therefore his
position as Minister of Environment with responsibility for the Geological
Survey and Mines Bureau ("GSMB").

Mr Ahamad and the Chairman of the GSMB, whom the Minister appointed to the
position, were named by the Company as respondents in the Company's legal
proceedings instituted in the Court of Appeal of the Democratic Socialist
Republic of Sri Lanka ("Court"), seeking the intervention of the Court in
respect of the notice of cancellation of the Company's Industrial Mining
Licences ("IMLs") issued by the GSMB.

As previously announced, the conduct of Mr Ahamad and the Chairman of the GSMB
is also under scrutiny from the Committee on Public Enterprises in Sri Lanka
which has appointed an independent sub-committee to investigate
misappropriation, as has been widely reported in Sri Lankan media.

Greg Martyr, Executive Chairman, commented:

"This is a positive development resulting in the removal from office of the
minister we believe to be primarily responsible for the illegal interference
with our licences. This, together with the recently approved change in mineral
licensing procedures, which transfers certain responsibilities to the Board of
Investment, should bode well for our situation but also more generally for the
country as it takes steps to improve governance.

We continue to await the outcome of our statutory appeal against the attempted
cancellation of our licences which was heard by the Secretary of the Ministry
of Environment two weeks ago and are confident of a positive outcome."

For further information, please visit www.capitalmetals.com
(http://www.capitalmetals.com) or 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 plc is a British company listed on the AIM segment of the
London Stock Exchange and one of only a few foreign investors in Sri Lanka's
mining industry. After investing US$11 million in exploration and development
activities including detailed environmental assessments between 2017 and 2022,
the Company's Sri Lankan subsidiary, Damsila Exports (Pvt) Limited, was issued
an initial two licences in August 2022 to mine heavy mineral sands in the
Eastern Province, containing industrial minerals including ilmenite, rutile,
zircon, and garnet.

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