Ceylon Graphite Closes Upsized $3,500,000 Private Placement and Extension of Debentures
13 May 2022 - 9:15PM
Ceylon Graphite Corp. (“Ceylon” or the “Company”) (TSXV: CYL)
(OTCQB: CYLYF) (FSE: CCY) is pleased to announce that further to
its press releases of April 6 and 7, 2022, it has closed a private
placement of 21,875,000 units (“Units”) at a price of $0.16 per
Unit for gross proceeds of $3,500,000 (the “Offering”). Each Unit
consists of one common share in the capital of the Company
(“Share”) and one common share purchase warrant (“Warrant”). Each
Warrant entitles the holder thereof to acquire one common share of
the Company (each a “Warrant Share”) at a price of $0.25 per
Warrant Share at any time until May 10, 2025.
Ceylon intends to use the net proceeds of the
Offering to advance the Company’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
low-CAPEX mining projects at the development stage, allowing for
scalable production. The high-grade nature of the graphite vein
mineralization is expected to generate high margins at the current
un-processed graphite price. Ceylon’s underground 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 graphite allows Ceylon to operate with Zero-Carbon
Footprint to be able to maintain a leading ESG profile, which is
has become a necessary characteristic to buyers of battery-quality
graphite (Original Equipment Manufacturers (OEMs)).
Ceylon CEO, Don Baxter stated “I am extremely
grateful for the support our strategic shareholders. I am looking
forward to getting two mines producing graphite in the very near
term. In the meantime, we continue our conversations with OEMs
regarding their battery graphite supply requirements. We are
witnessing a sea of change in attitudes from OEMs as they realize
need for the supply of critical input materials to feed the battery
factories they are announcing.”
In connection with the Offering, a 7.5% cash finder’s fee was
paid together with the issuance of finder warrants equal to 7.5% of
the total number of Units placed, each exercisable for one Unit at
a price of $0.16 at any time until May 10, 2025. All securities
issued pursuant to the Offering are subject to a statutory hold
period of four months and one day. PowerOne Capital Markets
Limited and Primary Capital Inc. acted as finders in connection
with the Offering.
This press release shall not constitute an offer
for the sale of securities, nor a solicitation for offers to buy
securities in any jurisdiction. The securities referred to in this
press release 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. Any public offering of
securities in the United States must be made by means of a
prospectus containing detailed information about the company and
management, as well as financial statements.
Approval to Amend Debentures and Warrants
The Company also announces that further to its
press release of April 6, 2022, it has received TSX Venture
approval to amend (the “Amendment”) certain terms of the
convertible debenture that were issued by the Company on May 23,
2018 (the “Convertible Debentures”) and the common share purchase
warrants (the “Warrants”) issued on May 23, 2018, in connection
with the Convertible Debentures. Pursuant to the terms of the
Amendment, the maturity date of the Convertible Debentures have
been extended by one (1) year from November 23, 2022, to November
23, 2023, and the expiry date of the Warrants have been amended
such the Warrants will expire May 23, 2023.
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. This licence is currently being
renewed. 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’s
plans to commence mining operations. Such forward-looking
statements reflect management's current beliefs and are based on
assumptions made by and information currently available to Ceylon,
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, 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, a failure
to comply with environmental regulations and a weakening of market
and industry reliance on high quality graphite. Ceylon cautions the
reader that the above list of risk factors is not exhaustive.
Ceylon Graphite (TSXV:CYL)
Historical Stock Chart
From Mar 2024 to Apr 2024
Ceylon Graphite (TSXV:CYL)
Historical Stock Chart
From Apr 2023 to Apr 2024