Capital Metals (AIM: CMET), a mineral sands company approaching mine development stage at the high-grade Eastern Minerals Project in Sri Lanka (the “Project”), is pleased to note that the Supreme Court in Sri Lanka has determined a decision by the Sri Lanka Muslim Congress to expel Minister Naseer Ahamad from its party membership to be legally valid.
As a result of his expulsion, Mr Ahamad has lost his parliamentary seat and therefore his position as Minister of Environment with responsibility for the Geological Survey and Mines Bureau (“GSMB”).
Mr Ahamad and the Chairman of the GSMB, whom the Minister appointed to the position, were named by the Company as respondents in the Company’s legal proceedings instituted in the Court of Appeal of the Democratic Socialist Republic of Sri Lanka (“Court”), seeking the intervention of the Court in respect of the notice of cancellation of the Company’s Industrial Mining Licences (“IMLs”) issued by the GSMB.
As previously announced, the conduct of Mr Ahamad and the Chairman of the GSMB is also under scrutiny from the Committee on Public Enterprises in Sri Lanka which has appointed an independent sub-committee to investigate misappropriation, as has been widely reported in Sri Lankan media.
Greg Martyr, Executive Chairman, commented:
“This is a positive development resulting in the removal from office of the minister we believe to be primarily responsible for the illegal interference with our licences. This, together with the recently approved change in mineral licensing procedures, which transfers certain responsibilities to the Board of Investment, should bode well for our situation but also more generally for the country as it takes steps to improve governance.
We continue to await the outcome of our statutory appeal against the attempted cancellation of our licences which was heard by the Secretary of the Ministry of Environment two weeks ago and are confident of a positive outcome.”
