LONDON (ShareCast) - (Sharecast News) - Capital Metals announced on Friday that Sri Lanka's Geological Survey and Mines Bureau (GSMB) has signed an agreement to provide technical services for the company's upcoming resampling and drilling programme at the high-grade Taprobane Minerals Project.
The AIM-traded firm said it was now finalising the renewal of land access permissions, with an air core drilling rig and team on standby.

It said the drilling programme would aim to expand the project's resource base while supporting ongoing design, engineering, and mine planning.

The programme was also intended to provide greater geological confidence in the planned mining areas.

While it was delayed due to Sri Lanka's elections, which resulted in ministerial and senior personnel changes, Capital Metals said it did not anticipate any impact on its target of reaching a final investment decision in the second quarter of this year.

The company said it expected construction to take nine to 12 months following approval, leading to first production thereafter.

Capital Metals also confirmed the renaming of the project from Eastern Minerals to Taprobane Minerals, a name chosen for its historical significance and community resonance as the ancient Greek name for Sri Lanka.

"We appreciate that our shareholders have been eagerly awaiting updates on drilling," said executive chairman Greg Martyr.

"The election of a new government created personnel changes at many levels.

"We have been working positively and co-operatively with all our new stakeholders as they have come into their new roles."

Martyr said the company wanted to have the GSMB "actively involved" in the drilling programme, adding he was "pleased" the company now had their agreement in hand to facilitate their participation, with a view to starting as soon as the final land access approval was refreshed.

"I am currently in Sri Lanka with our COO, Stuart Forrester; the team, supported by our technical consultants, are making good progress on key workstreams required to reach FID, including plant design and logistics.

"I'm impressed with our field office staff and the rapport they are building with the local community.

"On the financing side, we continue to advance dialogue with offtakers, vendor financiers, and potential Sri Lankan project partners to finance the project in a way that minimises or eliminates the requirement to raise market equity."

At 0846 GMT, shares in Capital Metals were down 1.24% at 1.43p.

Reporting by Josh White for Sharecast.com.

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