Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
Shares of natural resources company Capital Metals (LON: CMET) have risen Tuesday after it told investors the Environmental Impact Assessment (EIA) for the Eastern Minerals Project in the Eastern Province in Sri Lanka has been approved by the Coast Conservation and Coastal Resources Management Department in Sri Lanka (CCD).
The AIM-quoted company said the CCD has issued a development activity permit to a CMET subsidiary company in Sri Lanka, Damsila Export Limited, which covers the northern half of the project.
The completion of the EIA is required by the Geographical Survey and Mines Bureau of Sri Lanka to issue the Industrial Mining License.
After the latest update, Capital Metals can now advance third-party offtake discussions, engineering design, and project finance plans. It has also revised timelines for the next stages of the project.
“The granting of the EIA is a considerable milestone for the company and demonstrates the Sri Lankan authorities' support for the project and should enable us to meet our target of commencing commercial production in less than 12 months' time,” commented Michael Frayne, CEO of Capital Metals.
He continued: “The timing of this milestone could not be better given the recent strengthening of mineral sands pricing and a positive medium-term outlook due to economic stimulus activity as well as decreasing supply from some large existing mines.”
Capital Metals shares are up 7.65% at 12.4p on Tuesday.
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