VANCOUVER, British Columbia, Dec. 01, 2020 (GLOBE NEWSWIRE) — Ceylon Graphite Corp. (“Ceylon Graphite” or the “Company”) (TSX-V: CYL) (OTC: CYLYF) (FSE: CCY) is pleased to announce that its wholly-owned subsidiary Sarcon Development (Pvt) Ltd.’s K1 and M1 sites in Sri Lanka have returned to full operations following easing of local COVID-19 related restrictions. The Company’s primary near term objective is to accelerate the commercial production volumes at its K1 site which first began production this year. Graphite mined from the Company’s K1 site is known to be some of the highest grade in the world and has been confirmed to be suitable to be easily upgraded for a range of applications including the high-growth electric vehicle and battery storage markets. The Company is also advancing towards development completion at its M1 site and is in the process of attaining mining licensing approval for production at this site. Additional near-term priorities include advancing development of additional sites and initiating geological work at other prospective areas of its land bank.
Additionally, the company continues to engage in active negotiations with graphite processors and end-users around the globe with the objective of working towards sales agreements since announcing its first two commercial sales earlier in 2020.
“The capital from our recent successful financing has allowed us to aggressively target increased production,” said Bharat Parashar, Chairman and Chief Executive Officer. “We are in active discussions with international vendors for equipment that will enhance our capabilities underground and are close to restarting drilling at our third site known as H1. Our geological team has started geophysical work to follow up on high-grade rich graphite intercepts in the Sabargamuwa area which had historic mining. Our previous work had outlined this and other areas for follow up across our extensive land package.”
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. 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. The Government of Sri Lanka has granted the Company’s wholly own subsidiary Sarcon Development (Pvt) Ltd. 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.
Further information regarding the Company is available at www.ceylongraphite.com
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)