10th Feb 2023 10:01
(Alliance News) - Capital Metals PLC on Friday said processes are underway to amend its corporate structure, in response to Sri Lanka's Geological Survey & Mines Bureau's temporary suspension of its industrial mining licences.
The mineral sands company approaching mine development stage at the Eastern minerals project in Sri Lanka said its subsidiary Damsila Exports Pvt Ltd received the notice from the GSMB, as announced on December 12.
While the its legal position is that its ownership structure conforms with the Sri Lankan statutory requirements, Capital Metals said its objective is to reach a pragmatic solution to satisfy the GSMB.
Accordingly, it is looking to amend its corporate structure in order to have the temporary suspensions of its industrial mining licences lifted as soon as possible.
"We believe this can be achieved in a timely manner and without materially impacting the company's economic value in the project," said Chief Executive Officer Michael Frayne.
"In the meantime, we are encouraged by the discussions with prospective offtakers and local strategic partners which have continued to advance positively."
Capital Metals said it will provide further updates in "due course".
Shares in Capital Metals were flat at 3.60 pence each in London on Friday morning.
By Greg Rosenvinge, Alliance News reporter
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