VANCOUVER, British Columbia, May 23, 2018 (GLOBE NEWSWIRE) -- Ceylon Graphite Corp. (“Ceylon Graphite”) (TSX-V:CYL) (OTC:CYLYF) (FSE:CCY) is pleased to announce it has completed a non-brokered private placement offering of units, at a purchase price of CDN$1.00 per Unit for aggregate gross proceeds of CDN$2,000,000 led by a strategic investment from Mr. Sasha Jacob. Each Unit will be comprised of CDN$1.00 in principal amount of convertible debentures and two common share purchase warrants. The principal amount of the Convertible Debentures will be convertible at the holder’s option into fully-paid common shares in the capital of the Company at any time prior to Maturity in three years, at a conversion price of CDN$0.25 per share. This is a premium of 25% to the current share price of CDN$0.20.
Closing of the Offering is subject to a number of conditions, including receipt of any necessary corporate and regulatory approvals including by the TSX Venture Exchange.
Mr. Sasha Jacob is one of Canada’s rising investor entrepreneurs who has a track record of spotting emerging sectors and game changing businesses to invest in early and nurture to maturity. He has done this successfully in the Renewable Energy and Cannabis sectors, where he was the first financier in Canada. In these sectors he has managed financial transactions valued at almost $10 billion. His ability to identify the Cannabis sector opportunity early resulted in returns to investors of over 10x and $1 billion in 24 months. Mr. Jacob has now trained his sights on the tremendous opportunity in Graphite and battery production for electric vehicles and energy storage.
Ceylon Graphite also announces that it has received assay results of laboratory testing of the latest graphite samples taken from its K1 mine site areas in Sri Lanka. These results indicate carbon content of 94.66 % (w/w). The laboratory testing was done by Geological Survey and Mines Bureau of the Government of Sri Lanka.
Bharat Parashar, Chief Executive Officer, said, “This has been a great week for us with the closing of the financing and with Mr. Jacob’s lead role. One is always fortunate when a major shareholder demonstrates their commitment to and faith in the company by increasing their exposure. We are also excited by the improvement in the quality of graphite found at our K1 site. We are currently at a depth of over 200 feet and expect the quality of the graphite mineralization to continue to improve as we go lower.”
In connection with the Offering, the Company paid certain arm’s length persons, finder’s fees in the aggregate amount of $67,500.”
Robert Marvin, P. Geo (ONT) is a Qualified Person under National Instrument 43-101, and has reviewed and approved the geological information provided in this news release.
About Ceylon Graphite Corp.
Ceylon Graphite is a public company listed on the TSX Venture Exchange that is in the business of exploring for and development of graphite in Sri Lanka. The Government of Sri Lanka has granted the company exploration rights in a land package of over 100km². These exploration grids (each a square kilometre 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. Sri Lankan graphite is known to be some of the purest in the world, and currently accounts for less than 1% of the world graphite production.
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the 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, Ceylon Graphite’s intention to apply for a Mining License 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, the drilling exercises will confirm the presence of high quality graphite, sufficient financial resources will be available, the records from the drilling exercises prove to be accurate, there will be no unanticipated delays or costs materially affecting Ceylon Graphite’s exploration, development and production, 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)
Further information regarding the Company is available at www.ceylongraphite.com
Bharat Parashar, Chairman and & Chief Executive Officer
Chairman & Chief Executive Officer