Ceylon Graphite Corp.. (CYL) increased its private placement for gross revenue to $ 3,500,000 to increase graphite production in its K1 and M1 mines.

Ceylon Graphite Corp. announces that it has closed a private placement of 21,875,000 units for $ 0.16 per unit for gross revenue of $ 3,500,000. Each share consists of one ordinary share of the company’s capital and one ordinary guarantee for the purchase of shares. Each warrant entitles its holder to acquire one ordinary share of the company for $ 0.25 per warrant share at any time until May 10, 2025.

Ceylon intends to use the net proceeds from the company’s proposal to move the company’s K1 and M1 mines to commercial production. The company expects to reach this stage within one year of the completion of the offer.

Graphite mining projects

Ceylon currently has ten low CAPEX mining projects under development, which allows for scalable production. The high-quality nature of graphite vein mineralization is expected to generate high margins at the current price of untreated graphite. Ceylon’s underground graphite in Sri Lanka is of high class (+ 90% Cg), which can be transported directly for processing into higher value-added material without the need for a mill or tailings pond.

The combination of underground mining and direct delivery of graphite allows Ceylon to operate with a zero carbon footprint to maintain a leading ESG profile, which has become a necessary feature for buyers of graphite with battery quality (OEMs) ).

“I am extremely grateful for the support of our strategic shareholders. “I look forward to receiving two graphite-producing mines in the near future,” said Don Baxter, CEO of Ceylon. “In the meantime, we are continuing our talks with OEMs about their requirements for the supply of graphite for batteries. We are witnessing a sea of ​​changes in attitudes on the part of OEMs, as they are aware of the need to supply critical inputs to power the battery factories they are announcing.

In connection with the offer, a search engine fee of 7.5% was paid together with the issuance of warrants equal to 7.5% of the total number of placed shares, each of which can be exercised for one share for $ 0.16 at any time. until May 10, 2025. All securities issued under the proposal are subject to a statutory retention period of four months and one day. PowerOne Capital Markets Limited and Primary Capital Inc. acted as searchers in relation to supply.

The securities offered were not, nor will be, registered under the U.S. Securities Act of 1933, as amended, or government securities laws, and may not be offered or sold in the United States either on or on behalf of or in favor of, persons from the United States who are absent from federal and state registration in the United States or an applicable exemption from the requirements for registration in the United States. This announcement does not constitute an offer to sell securities in the United States.

Approval for amendment of bonds and warrants

In addition to its press release of April 6, 2022, Ceylon received TSX Venture approval to amend certain terms of the convertible bonds issued by the company on May 23, 2018, and warrants for the purchase of ordinary shares issued in connection with the convertible bonds. Under the terms of the amendment, the maturity of the convertible bonds has been extended by one year from 23 November 2022 to 23 November 2023, and the expiry date of the warrants has been changed so that the warrants expire on 23 May 2023.

About Ceylon Graphite Corp.: Developing graphite production

Ceylon Graphite is a public company listed on the TSX Venture Exchange, which is engaged in the extraction of graphite and develops and commercializes innovative applications and products for graphene and graphite. Sri Lanka’s graphite is known to be one of the highest in the world and has been shown to be easy to upgrade for a number of applications, including the markets for high-growth electric vehicles and batteries, as well as construction, healthcare and paint and coating sectors.

The Government of Sri Lanka has provided the wholly owned subsidiary of Sarcon Development (Pvt) Ltd. an IML category A license for its K1 mine and exploration rights in a land package of over 120 km². This license is currently being renewed. These research networks (each square kilometer) cover areas of historical graphite production from the early twentieth century and represent most of the famous graphite manifestations in Sri Lanka.

STATEMENTS FOR THE FUTURE:

This news release contains information about the future, as this term is defined in the applicable securities laws, which refer to future events or future performance and reflect current expectations and assumptions of management. The forecast includes statements on Ceylon’s plans to launch mining operations. Such forward-looking statements reflect management’s current beliefs and are based on assumptions and information currently available in Ceylon, including the assumption that there will be no significant adverse changes in metal prices, all necessary consents, licenses, permits and approvals will be obtained, including various local government licenses and the market. Investors are warned that these forward-looking statements are neither promises nor guarantees and are subject to risks and uncertainties that could lead to future results differing materially from those expected. Risk factors that could cause actual results to differ materially from those expressed or implied by the forecast information include, but are not limited to, failure to obtain or delay obtaining the necessary regulatory licenses, permits, approvals, and consents. access to finance when needed, general economic downturn, volatile stock prices, workers’ strikes, political unrest, changes in the regulatory regime of mining governing Ceylon, non-compliance with environmental regulations and weakening market and industry dependence on high-quality graphite. Ceylon warns the reader that the above list of risk factors is not exhaustive.

Ceylon Graphite: Advancing graphite production through shares offer

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