Capital Metals PLC (AIM:CMET) said several potential offtake partners have visited the site of its Eastern Minerals operation in Sri Lanka.
"While the details of discussions with these parties are commercially sensitive, I am pleased to confirm that we are in discussions with a range of parties including large pigment producers out of Asia," said James Leahy, non-executive director.
"Some of those parties have concluded site visits, conducted detailed testing and analysis of our proposed mineral products, and reviewed our Development Plan."
The progress Capital Metals was able to make during the recent civil unrest in Sri Lanka has underlined the quality of its Eastern Minerals project, he added ahead of the company's AGM.
"This culminated in the grant of our project's first two Industrial Mining Licences (IMLs).
"The IMLs were a major step forward in advancing the ongoing discussions with offtakers, debt providers and other strategic funding parties.
"The strong current and forecast prices for our minerals, coupled with the clear potential for further expansion of our high-grade resource, provides excellent potential to further enhance the economics of the project which are already compelling."