19th Oct 2023 11:36
(Alliance News) - Capital Metals PLC on Thursday said it received a favourable ruling regarding its cancelled industrial mining licences in Sri Lanka.
The Sri Lanka-focused mineral sands company said it received the ruling from Sri Lanka's Ministry of Environment concerning the reissue of its heavy mineral sands licenses 16236 and 16237. This follows almost a year of legal and lobbying efforts.
"Having considered the written and oral submissions, the secretary determined that the cancellation of the [industrial mining licenses] was not correct and ordered the [Geological Survey & Mines Bureau] to reissue the IMLs to the company's Sri Lankan subsidiary, Damsila Exports (Pvt) Ltd", the firm explained.
The development "clears the path" for Capital to finalise its offtake and financing agreement with LB Group, for which it first announced it had signed a memorandum of understanding back in May.
"It will be a pleasant change to be working on these value adding initiatives rather than fighting against the injustice we suffered at the hands of a few over the last 12 months," said Executive Chair Greg Martyr.
Last week, Capital Metals welcomed that the Supreme Court in Sri Lanka had decided that the decision by the Sri Lanka Muslim Congress to expel Naseer Ahamad from its party is legally valid.
Martyr back then said this was a "positive development" as the company believed the minister to be "primarily responsible for the illegal interference" with its licences. The company's licences in Sri Lanka had been suspended since December 2022.
Consequently, Ahamad has lost his parliamentary seat and his position as Minister of Environment.
Capital Metals shares rose 8.5% to 5.10 pence per share on Thursday morning in London.
By Tom Budszus, Alliance News reporter
Comments and questions to [email protected]
Copyright 2023 Alliance News Ltd. All Rights Reserved.