Capital Metals PLC - London-based, Sri Lanka-focused mineral sands mining company - On Friday, says it understands that the board of investment of Sri Lanka, the investment promotion agency, will now be involved in the appraisal of and recommendation for the approval of mineral licences while the GSMB will have a continuing role in managing licences. This follows a Sri Lankan government cabinet paper setting out a change in mineral licensing procedures which was approved in late July. Adds the company is in the final stages of establishing a board of investment company which will hold all its interests in Sri Lanka and will be afforded the direct protections against nationalisation. Greg Martyr, executive chair says: "Through a combination of procedural reforms and public inquiries, it is pleasing to see the ability to abuse authority and frustrate the mineral licensing process is gradually ebbing away from officials in the GSMB. This can only be a good thing for the country and our situation."

Further, reports a number of legal actions continue. Martyr says: "The legal proceedings in which we have participated to date have been conducted in a professional manner with the cooperation of the senior Sri Lankan authorities involved. This reinforces our view that the suspension of the company's IMLs is the work of a minority of bad actors and is not supported by the state."

"The company is closely monitoring costs to ensure we have sufficient funds to cover overheads while keeping any ground activity to a minimum," Martyr adds.

Current stock price: 1.47 pence

12-month change: down 70%

By Jeremy Cutler, Alliance News reporter

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