VANCOUVER, British Columbia, Mar 04, 2021 (GLOBE NEWSWIRE via COMTEX) — VANCOUVER, British Columbia, March 04, 2021 (GLOBE NEWSWIRE) — 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.
- 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 Conferences
Ceylon 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 Conference
March 23-25, 2021
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 120km(2). 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 Officer
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)