12th Dec 2022 14:41
(Alliance News) - Capital Metals PLC's shares tumbled on Monday as it said two industrial mining licences issued to its subsidiary Damsila Exports Pvt Ltd have been temporarily suspended.
The London-based mineral sands explorer focused in the Eastern Province in Sri Lanka said the Board of Investment of Sri Lanka is carrying out an investigation regarding the ownership structure of Damila, after the Geological Survey & Mines Bureau gave notice to Damsila that they consider it necessary for the subsidiary's shareholding structure to have been approved by the BOI.
Capital Metals shares were down 43% trading at 2.70 pence per share on Monday afternoon in London.
"There appears to be some uncertainty within the GSMB (and perhaps the BOI) around the application of the Foreign Exchange Act of Sri Lanka that governs investment in shares in companies incorporated in Sri Lanka by non-residents," the company said.
Capital Metals said it has been working with the GSMB to "clarify any concerns around the structure", and added that Damsila conforms with the Foreign Exchange Act, and does not need BOI approval for the issuance of shares to its Sri Lankan resident parent company Redgate Lanka (Pvt) Ltd, whose ultimate parent is Capital Metals.
The company said that there could be delays in resolving the matter, due to the removal of the chair of the GSMB on December 8 and the director general being sent on compulsory leave.
By Harvey Dorset, Alliance News reporter
Comments and questions to [email protected]
Copyright 2022 Alliance News Ltd. All Rights Reserved.
Related Shares:
Capital Metals