Ceylon Graphite closes first tranche of its private placement as it secures new strategic investor
Ceylon Graphite Corp (CVE:CYL) (OTCMKTS:CYLUF) (FRA:CCY) announced on Friday that it has closed the first tranche of its private placement with strong interest from a new strategic investor group.
On October 19, Ceylon Graphite unveiled plans to raise up to C$4.5 million through a private placing, to accelerate its commercial operations.
In a statement, the miner said it offered an aggregate of 30,163,566 units at a price of $0.0875 per unit for gross proceeds of $2,639,312. The second closing for the balance of the offering is likely to happen around October 28.
READ: Ceylon Graphite poised for new C$4.5M placing to accelerate operations; shares surge
Each unit consisted of one share in Ceylon Graphite and one share purchase warrant. Each warrant entitles the holder to acquire one 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,” Ceylon Graphite CEO Bharat Parasha said in a statement.
“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.
The company, which was established in 2017, is developing graphite mines in historic resource areas of Sri Lanka.
The company holds a total land package of 121 square kilometres, which contains historic vein graphite deposits, as opposed to flake type graphite deposits.
Contact the author Uttara Choudhury at [email protected]
Follow her on Twitter: @UttaraProactive
Story by ProactiveInvestors
Source: https://www.proactiveinvestors.com/companies/news/932279/ceylon-graphite-closes-first-tranche-of-its-private-placement-as-it-secures-new-strategic-investor-932279.html
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