Capital Metals PLC (AIM:CMET) has told investors it is undertaking processes in Sri Lanka to amend its corporate structure with the aim of having the temporary suspension of its Industrial Mining Licences (IMLs) lifted as soon as possible.
The company’s IMLs were suspended in early December amid disagreement with the Sri Lankan authorities over the company’s adherence to rules around domestic ownership – the company held its IMLs in a Sri Lankan holding subsidiary.
Now, the company says it is seeking a pragmatic resolution to the matter to satisfy ‘the spirit of the law’ requiring local ownership of mining and primary processing activities in Sri Lanka.
"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,” chief executive Michael Frayne said in a statement.
“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," he added.