Ceylon Graphite Announces Closing of the First Tranche of Its Private Placement
October 23 2020 - 7:00AM
Ceylon Graphite Corp. (“Ceylon Graphite” or the “Company”)
(TSX-V: CYL) (OTC: CYLYF) (FSE: CCY) is pleased to
announce that further to its press release of October 19, 2020, it
has closed its first tranche of the private placement. An aggregate
of 30,163,566 units (“Units”) at a price of $0.0875 per Unit for
gross proceeds of $2,639,312 (the “Offering”). The second closing
for the balance of the Offering is anticipated to occur on or about
October 28th, 2020, or such other date as the Company may
determine.
PowerOne Capital Markets Limited and Primary
Capital Inc. (collectively, the “Finders”) acted as finders for the
Offering.
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
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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