Ceylon Graphite Announces $3 Million Private Placement
07 April 2022 - 6:16AM
Ceylon Graphite Corp. (“
Ceylon”
or the “
Company”) (TSXV: CYL) (OTCQB: CYLYF) (FSE:
CCY) is pleased to announce its intention to complete a private
placement pursuant to which it will issue and sell up to 18,750,000
units of the Company (the “Units”) at a price of $0.16 per Unit
(the “Unit Price”) for aggregate gross proceeds of up to $3,000,000
(the “Offering”).
Each Unit will consist of one common share
(“Share”) of the Company and one common share purchase warrant
(“Warrant”). Each Warrant will entitle the holder thereof to
acquire one Share of the Company at a price of $0.25 for a period
of 36 months following the closing of the Offering.
Ceylon intends to use the net proceeds of the
Offering to advance the Corporation’s K1 and M1 mines to commercial
production. The Company anticipates achieving this milestone within
one year of the closing of the Offering. Ceylon currently has ten
mining projects, each of which are also expected to have relatively
low development capital expenditures which it also intends to bring
into commercial production. The high-grade nature of the high-grade
vein mineralization is expected to generate high margins even at
the current un-processed graphite price. Ceylon’s under-ground vein
graphite, in Sri Lanka, is high grade (+90% Cg), which can directly
be shipped for processing into higher value-add material without
the need for a mill or a tailings dam. The combination of
underground mining and direct shipping ore, places Ceylon in an
enviable position to operate with Zero-Carbon Footprint to be able
to maintain a leading ESG profile, which is quickly becoming a
necessary characteristic to buyers of battery-quality graphite
(Original Equipment Manufacturers (OEMs)).
Each Unit will consist of one common share
(“Share”) of the Company and one common share purchase warrant
(“Warrant”). Each Warrant will entitle the holder thereof to
acquire one Share of the Company at a price of $0.25 for a period
of 36 months following the closing of the Offering.
In connection with the Offering, the Company may
pay finders' fees in cash or securities, or a combination of both,
as permitted by the policies of the exchange. PowerOne Capital
Markets Limited and Primary Capital Inc. (collectively, the
“Finders”) will act as finders in connection with the Offering.
All securities issued in connection with the
Offering will be subject to a four month and one day hold period.
The Offering is subject to a number of conditions, including,
without limitation, receipt of all regulatory approvals.
The securities being offered have not been, nor
will they be registered under the United States Securities Act of
1933, as amended, or state securities laws and may not be offered
or sold within the United States or to, or for the account or
benefit of, U.S. persons absent U.S. federal and state registration
or an applicable exemption from the U.S. registration requirements.
This release does not constitute an offer for sale of securities in
the United States.
Debenture and Warrant
Extension
Concurrent with the Offering, the Company
intends to amend certain terms of the convertible debentures that
were issued by the Company on May 23, 2018 (the “Convertible
Debentures”). Ceylon proposes to amend the Convertible Debentures
by extending the maturity date of the Convertible Debentures by one
(1) year from November 23, 2022 to November 23, 2023.
In consideration for the holders of the
Convertible Debentures agreeing to the proposed amendment, the
Company is proposing to extend the expiry date of the common share
purchase warrants (the “Warrants”) issued on May 23, 2018 by one
(1) year from November 23, 2022 to November 23, 2023.
The proposed amendments are subject to the
approval of the holders of the Convertible Debentures as well as
the TSX Venture Exchange.
All other terms and conditions of the
Convertible Debentures and Warrants will remain unchanged.
About Ceylon Graphite Corp.
Ceylon Graphite is a public company listed on
the TSX Venture Exchange, which 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 highest grade 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 mine 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
Don Baxter, Chief Executive Officer info@ceylongraphite.com
Corporate Communications +1(604) 765 8657
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.
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