Business
Notice received from the GSMB
Notice received from the GSMB.
About this update from Capital Metals Plc
[{"type":"text","content":"\n \n \n \n \n \n \n \n THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED. ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.\n \n \n \n \n \n 12 December 2022\n \n \n \n \n \n \n Capital Metals plc\n \n \n \n (\"CMET\" or the \"Company\")\n \n \n \n Notice received from the GSMB in connection with the shareholding structure of\n \n \n \n \n Sri Lankan Subsidiary\n \n \n \n \n Capital Metals plc (AIM: CMET), a natural resources company focused on the development of the Eastern Minerals Project located in the Eastern Province in Sri Lanka (the \"Project\"), one of the highest-grade mineral sands projects globally, announces that notice has been provided by the Geological Survey and Mines Bureau (\"GSMB\") to the Company's Sri Lankan subsidiary Damsila Exports Pvt Limited (\"Damsila\") that they consider it necessary for the current shareholding structure of Damsila to have been approved by the Board of Investment of Sri Lanka (BOI) and as Damsila has not obtained such approval they will be carrying out proper investigations regarding the ownership structure of Damsila, and that in the meantime the two Industrial Mining Licences (\"IMLs\") which were issued to Damsila are temporarily suspended.\n \n \n \n \n CMET has been working with the GSMB to clarify any concerns around the structure, which was set up in 2016 and has been made clear to the GSMB throughout its mutual dealings, including the applications and granting of the Company's exploration licences, environmental permits (EIA) and the IMLs themselves. 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. Damsila, is a subsidiary company of a Sri Lanka resident company, Redgate Lanka (Pvt) Limited. The ultimate parent of Redgate is CMET\n \n .\n \n \n \n The Company has made several submissions to the GSMB and relevant authorities based on the advice of its well regarded in country legal counsel, Varners, which has provided its opi...