Capital Metals PLC said recently that it has requested the temporary suspension of its industrial mining licence in Sri Lanka be lifted following the restructuring of its Sri Lankan subsidiary Damsila Exports (Pvt.) Ltd.

The mining company said that under the restructuring – which it carried out so as to satisfy regulation requiring local ownership of mining and primary processing activities – an effective 60% of Damsila’s ownership has been issued to a Sri Lankan citizen who has worked with the company since 2015.

Capital said the restructuring has been completed without materially impacting the company’s economic value in the Eastern minerals project, and that it will continue funding its capital and operations.

The company said it has provided evidence of the restructuring to Sri Lanka’s Geological Survey and Mines Bureau and requested that the suspension be lifted as soon as possible.

“We look forward to having the temporary suspension lifted and to the completion of our advanced negotiations with prospective local strategic partners and offtake partners, which have continued positively,” Chief Executive Michael Frayne said.

(Dow Jones Newswires)