Capital Metals PLC (AIM:CMET) said it has been granted two mining licences for its high-grade Eastern Minerals mineral sands project in Sri Lanka.
Two 10-year industrial mining licences (IMLs) were provided by the Geological Survey and Mines Bureau of the Government of Sri Lanka (GSMB) for the project, enabling mining activities to begin.
"The grant of the IMLs is a key milestone in enabling the commencement of mining activities and the advancement of ongoing discussions with offtakers, debt providers and other strategic funding parties," said Michael Frayne, chief executive of the AIM-listed company.
"We are grateful to the Sri Lankan authorities for their cooperation, especially given the current economic and political situation, and believe this represents a strong endorsement of the project and its future benefits to Sri Lanka."
Frayne said the two licences "provide a basis" for the granting of further IMLs.
The company said Eastern Minerals is one of the highest-grade mineral sands projects globally.
With the current and forecast prices for the minerals, coupled with the potential for further expansion of the resource, Frayne said this "suggests further upside to our compelling base case NPV of US$155 million and IRR of 56% is achievable".