Ceylon Graphite Announces Proposed Private Placement of Units
August 06 2020 - 8:00AM
Ceylon Graphite Corp. (“
Ceylon
Graphite” or the “
Company”)
(TSX-V: CYL) (OTC: CYLYF) (FSE: CCY) announces its
intention to complete a non-brokered private placement of units
(“
Units”) for gross proceeds of up to C$ 8,100,000
or US$ 6,000,000 (US$1= C$1.35) to a consortium of four
international investors (the “
Offering”). Upon the
closing of the Offering, the consortium will, collectively, own
approximately 55% of the issued and outstanding shares of the
Company, though individually no one subscriber will hold more than
15% of the issued and outstanding shares. Mr. Paul Selvam Devadoss
and Mr. Anuka B.A Soza will join the Board of Directors of the
Company.
Each Unit will be comprised of one common share
in the capital structure of Ceylon Graphite (a “Unit
Share”) and 0.3073 of a common share purchase warrant
(“Warrant”). Each whole Warrant will entitle the holder thereof to
acquire one common share in the capital of Ceylon Graphite
(“Warrant Share”) at any time until such date that three years from
the date of issuance. The Warrants shall only be exercisable in the
event that the currently issued and outstanding warrants, options
and/or convertible debentures are exercised or converted into
common shares.
As the Offering will result in the creation of
new insiders of the Company, shareholder approval is required.
Ceylon Graphite intends to obtain such shareholder approval by
written consent of the holders of more than 50% of the issued and
outstanding shares in the capital of the Company. The closing is
also conditional on the receipt of the approval of the TSX Venture
Exchange and is anticipated to occur on or before September 7,
2020, or such other date as the Company may determine.
“In these very turbulent and uncertain times
with the COVID-19 pandemic and our previously devolved offering, we
are pleased that the international investor community continues to
view Ceylon Graphite as an attractive investment opportunity,” says
Bharat Parashar, Chairman and Chief Executive Officer. “These
funds put the Company in a very strong cash position for the
foreseeable future and will primarily be used for the development
of our mining assets in Sri Lanka. In addition to accelerating our
production at K1 and completing development work at the M1 site, we
will be commissioning new mining sites to ramp up our production
substantially.”
About Ceylon Graphite Corp.
Ceylon Graphite, is a public company listed
on the TSX Venture Exchange (CYL:TSX-V), that is in the
business of mining for graphite, plus the exploration for and
development of graphite mines in Sri Lanka. The Government of Sri
Lanka has granted the Company an IML Category A license for it’s K1
site and exploration rights in a land package of over 120km². These
exploration grids (each one square kilometer in area) cover areas
of historic graphite production from the early twentieth century
and represent a majority of the known graphite occurrences in Sri
Lanka. Graphite mined in Sri Lanka is known to be some of the
purest in the world, and currently accounts for less than 1% of the
world graphite production.
Further information regarding the Company is
available at www.ceylongraphite.com
Bharat Parashar,
Chairman and & Chief Executive Officer
info@ceylongraphite.comCorporate Communications (604) 559-8051
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release
FORWARD LOOKING
STATEMENTS:
This news release contains forward-looking
information as such term is defined in applicable securities laws,
which relate to future events or future performance and reflect
management's current expectations and assumptions. The
forward-looking information includes statements about Ceylon
Graphite’s grids, Ceylon Graphite’s plans to undertake additional
drilling and to develop a mine plan, and to commence establishing
mining operations. Such forward-looking statements reflect
management's current beliefs and are based on assumptions made by
and information currently available to Ceylon Graphite, including
the assumption that, there will be no material adverse change
in metal prices, all necessary consents, licenses, permits and
approvals will be obtained, including various Local Government
Licenses and the market. Investors are cautioned that these
forward-looking statements are neither promises nor guarantees and
are subject to risks and uncertainties that may cause future
results to differ materially from those expected. Risk factors that
could cause actual results to differ materially from the results
expressed or implied by the forward-looking information include,
among other things, an inability to reach a final acquisition
agreement, inaccurate results from the drilling exercises, a
failure to obtain or delays in obtaining the required regulatory
licenses, permits, approvals and consents, an inability to access
financing as needed, a general economic downturn, a volatile stock
price, labour strikes, political unrest, changes in the mining
regulatory regime governing Ceylon Graphite, a failure to comply
with environmental regulations and a weakening of market and
industry reliance on high quality graphite. Ceylon Graphite
cautions the reader that the above list of risk factors is not
exhaustive.
These forward-looking statements are made as of
the date hereof and, except as required under applicable securities
legislation, Ceylon Graphite does not assume any obligation to
update or revise them to reflect new events or circumstances. All
of the forward-looking statements made in this press release are
qualified by these cautionary statements and by those made in our
filings with SEDAR in Canada (available at www.sedar.com).
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