Each Unit is comprised of one (1) common share in the capital of Ceylon Graphite (a “Common Share”) and one (1) common share purchase warrant (a “Warrant”). Each Warrant entitles the holder thereof to acquire one common share in the capital of Ceylon Graphite (“Warrant Share”) at an exercise price of $0.15 at any time up until October 22, 2023.
“We are very pleased to have attracted the interest of a new strategic and highly sophisticated investor group,” said Bharat Parashar, Chairman and Chief Executive Officer. “The challenge for small cap mining companies is the initial capital to see it through discovery to production. We are producing and have booked our first sales, making Ceylon Graphite a unique story in the graphite mining and energy storage space globally. Most junior companies raise money on the hopes of reaching production someday. We are already there and this new investment simply increases our market advantage.”
The Company intends to use the net proceeds of the offering to accelerate the commercial production initiated earlier this year at its K1 site, finish development and attain mining licensing approval for its M1 site, advance development of additional sites and for general corporate purposes. All securities issued are subject to a statutory hold period of four months and one day.
Ceylon Graphite paid the Finders a cash commission $184,751.84 (the “Cash Commission”). The Cash Commission was satisfied through the issuance of 2,111,450 Units. In addition, the Company issued to the Finders 2,111,450 non-transferable broker warrants (the “Broker Warrants”). Each Broker Warrant entitles the Finders to purchase one unit of Ceylon Graphite (each a “Compensation Unit”) at the price of $0.0875 per Compensation Unit at any time until October 22, 2023.
Each Compensation Unit is comprised of one (1) common share in the capital of Ceylon Graphite and one (1) common share purchase warrant (each “Compensation Unit Warrant”). Each Compensation Unit Warrant shall entitle the holder thereof to purchase one (1) common share in the capital of the Company (each a “Compensation Warrant Share”) at a price of $0.15 per Compensation Warrant Share at any time until October 22, 2023.
Closing of the Offering is conditional on the receipt of final approval of the TSX Venture Exchange; conditional approval is in place.
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, 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 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. 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