Ceylon Graphite Corp (CVE:CYL) (OTCMKTS:CYLUF) (FRA:CCY) announced on Thursday that it has issued additional units in connection with closing a second tranche of its private placement to raise an additional C$1.86 million.
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 that after completing the first tranche and raising gross proceeds of $2,639,312, it offered an additional 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. In aggregate, Ceylon Graphite said it has issued around 51,428,556 units in total to raise the targeted C$4.5 million.
READ: Ceylon Graphite closes first tranche of its private placement as it secures new strategic investor
Each unit is comprised of one share in Ceylon Graphite and one share purchase warrant. Each warrant entitles the holder to one share at an exercise price of $0.15 at any time up until October 28, 2023.
“We are very pleased with the overwhelming interest from sophisticated and strategic investors for this offering. Strategic battery metals are in significant demand globally and our goal is to be the premier producer of high-quality graphite for the energy storage industry,” Ceylon Graphite CEO Bharat Parashar said in a statement.
“The company has made significant progress over the past four years towards this goal. This financing will now allow us to aggressively grow our business through increased production, ramping up sales efforts for long term contracts and the commissioning of a processing unit,” he added.
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]
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