Griffin Mining (LON: GFM) shares are rising on Monday following the company’s announcement that a new Mining License has been approved and issued by the Chinese Ministry of Land and Natural Resources.
The license covers both the zone 2 and zone 3 areas of the Caijiaying mine.
Griffin labelled the license as a “major milestone” after eight years of lengthy document preparation and written submissions that were needed to navigate a significant number of legislative and regulatory changes.
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The new license will allow the company to increase the annual mined ore from 820,000 tonnes in 2020 to 1.1 million tonnes in 2021. With the increased ore accessed from zone 2, the number will increase to over 1.5 million tonnes per year in 2022.
“It is a gigantic achievement which catapults Griffin from a junior mining company into the ranks of one of the largest zinc producers, in the largest base and ferrous metals consuming market in the world,” commented Mladen Ninkov, Griffin’s chairman.
Griffin’s stock price is currently trading 16.23% higher at 111p per share after reaching highs of 124.6p earlier in the day.