REG - Capital Metals PLC - Update re Temporary Suspension of IMLs

Capital MetalsAnnouncement

10/02/2023 07:00

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RNS Number : 5653P  Capital Metals PLC  10 February 2023

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
(http://www.capitalmetals.com) or contact:

 Capital Metals plc                           Via Vigo Consulting

 Michael Frayne (CEO)

 James Mahony (CFO)
 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

 

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.

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