Ceylon Graphite Announces Discovery of New Graphite Veins and Provides Operational Update
March 04 2021 - 7:45AM
Ceylon Graphite Corp. (“Ceylon Graphite”, or “CYL” or the
“Company”) (TSX-V: CYL) (OTC: CYLYF) (FSE: CCY) is pleased
to announce the discovery of new graphite veins on its H1 site and
provide an operational update as the Company continues to achieve
significant milestones as business activities have returned to
planned levels in 2021 post COVID-19 disruptions.
Highlights Include:
- Discovery of new
graphite veins from the recently commenced drilling at the
Company’s H1 site (the Company’s third site in addition to the K1
and M1 mines). Both drills have passed 60 meters depth in the first
days of drilling. Samples have been sent to the GSMB for
testing.
- The Industrial
Mining License Category A for the K1 mine has been renewed by the
Geological Society and Mines Bureau of the Government of Sri Lanka.
Production at the K1 site has restarted.
- The primary mine
shaft at K1 has been extended by 60 feet to the level of the main
veins to enable easier excavation of the graphite and expedite ramp
up of production.
- The company has
purchased a new hydraulic underground core drilling rig to
accelerate production ramp up.
- Additional updates can be found on the Company website:
www.ceylongraphite.com
“We are very excited with this new graphite vein discovery at
our H1 site on our first holes, which continues to demonstrate the
abundance of vein graphite on our properties and the effectiveness
of our exploration methodologies,” stated Bharat Parashar, Chairman
and CEO. “With our recent exploration success and continued ramping
up of operations, Ceylon is rapidly advancing towards its goal of
becoming a leading producer of high-grade, environmentally
friendly, natural graphite and a vertically integrated advanced
material and technology company.”
Upcoming Virtual ConferencesCeylon Graphite will
be presenting at the following virtual investor conference in the
next month and welcomes anyone interested to reach out for meeting
requests and/or presentation details.
Mines and Money Online
Global ConferenceMarch 23-25,
2021https://minesandmoney.com/online/march/
Qualified Person
Donald K.D. Baxter, P. Eng. is a Qualified
Person under National Instrument 43-101 and has reviewed and
approved the geological and technical information provided in this
news release.
Ceylon Graphite would also like to announce that further to its
press release of January 4, 2021, it has received TSX Venture
approval for the amendment of its convertible debentures that were
issued on May 23, 2018 (the “Debentures”) and for the issuance of
an aggregate of 1,970,624 common shares for the settlement of an
aggregate of $325,153 in accrued interest on the Debentures. The
Debentures have been amended as follows:
(i) |
maturity date
has been amended from May 23, 2021 to November 23, 2021. |
(ii) |
the Company now has the option to redeem the Debentures at any
time, on ten (10) days’ notice, without penalty; and |
(iii) |
interest rate has been increased from 6% to 8%. |
In consideration for amending the Debenture, the expiry date of
the original warrants has been amended from May 23, 2021 to
November 23, 2021 and an additional 1,000,000 warrants will be
issued to the holders of the Debentures. These additional warrants
will permit the holder thereof to acquire one (1) common share at
an exercise price of $0.22 per share for a period of one (1) year
from date of issuance.
About Ceylon Graphite Corp.
Ceylon Graphite is a public company listed on
the TSX Venture Exchange, that is in the business of mining for
graphite, and developing and commercializing innovative graphene
and graphite applications and products. Graphite mined in Sri Lanka
is known to be some of the purest in the world and has been
confirmed to be suitable to be easily upgradable for a range of
applications including the high-growth electric vehicle and battery
storage markets as well as construction, healthcare and paints and
coatings sectors. The Government of Sri Lanka has granted the
Company’s wholly owned subsidiary Sarcon Development (Pvt) Ltd. an
IML Category A license for its 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.
Further information regarding the Company is
available at www.ceylongraphite.com
Bharat Parashar, Chairman and & Chief
Executive Officerinfo@ceylongraphite.comCorporate
Communications+1(202)352-6022
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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