Ceylon Graphite Corp (CVE:CYL) (OTCMKTS:CYLYF) received a major boost on Monday after it was granted a mining license for its K1 graphite project in Sri Lanka, the final milestone before commercial production.
The country’s mining regulator, the Geological Survey and Mines Bureau (GSMB), granted the industrial mining license category A to Ceylon’s wholly owned subsidiary Sarcon Development (Pvt) Ltd.
The license is the highest category license in Sri Lanka and grants the company exclusive rights to mine, process and trade in graphite mined within the project area.
READ: Ceylon Graphite gets nod from Sri Lanka’s Central Environmental Authority for graphite mining project
“This is a huge development for Ceylon Graphite and is what we have all been working towards for the last two and a half years,” said Bharat Parashar, Ceylon’s CEO.
“Historically the GSMB has granted just four IMLA licenses for graphite mining in Sri Lanka including the Sarcon/Ceylon Graphite license,” Parashar said in a statement.
“We have achieved this license in a short period of time thanks to the hard work of all our Sri Lankan colleagues. I must also thank the GSMB for their assistance and guidance. Today, we start the process to commence commercial production at our K1 site.”
The Vancouver-based company will now be able to begin production from K1, which is in Karasnagla, Sri Lanka.
Sri Lankan authorities granted Ceylon its environmental permit for K1 last week.
Shares of Ceylon Graphite gained 4% on Monday morning at C$0.13 in Toronto.
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