Lanka Graphite has successfully concluded the acquisition of Miniran Pty Ltd (Miniran), an Australian incorporated company that holds a portfolio of highly prospective graphite tenements in Sri Lanka, for a total consideration of $1.98 million, via a Share Sale Agreement (see ASX announcement 18 April 2017). The exploration tenements held by Miniran include 196 Grid Units across several districts located in Sri Lanka that cover several abandoned historical mines and graphite production operations.
Under the terms of the Agreement, consideration for the acquisition of Miniran will consist of a new issue of 10,560,000 fully paid ordinary shares (Sale Shares) valued at $1.32 million, as well as a cash payment of $660,000. The Deemed Issue Price of the Sale Shares equates to $0.125 per share and the shares will be issued immediately on completion of the Share Sales Agreement while payment of the cash component will be deferred 12 months from the completion of the Agreement.
This acquisition by Lanka is significant in that the Miniran portolio represents the last large remaining graphite ground tenement package available in Sri Lanka. The Miniran portfolio is made up of 5 tenements which in turn consist of varying “Grid Units” (Figures 1-‐4.) in districts and divisions in the South and South West region of Sri Lanka where all historical graphite production has taken place. The tenements cover a number of abandoned mines and production locations that Lanka’s team on the ground in Sri Lanka have explored, examined and sampled, before being satisfied of the high prospectivity of the tenements.
With the successful completion of this acquisition from Miniran, Lanka Graphite will control the largest land holding prospective for high grade vein graphite in Sri Lanka. The proximity of the Miniran tenements to Lanka’s existing exploration licences ensures the Company will be in the best position to make future commercial decisions on a mining and production operation.
Images of vein graphite occurrence taken at Miniran tenement site visit
Figure 1. Outcropping vein graphite
Figure 2. Graphite vein structure in trench wall
Details of the project locations in Sri Lanka (196 Grids)*:
• 50 Grid Units in Kiriella and Kuruwita DS Divisions in Ratnapura District
• 48 Grid Units Centred on Udalamatta and Yatalamatta Areas in Yakkalamulla and Nagoda DS Divisions in Galle District
• 84 Grid Units Around Panagoda – Dellawa – Banagala – Millawa – Waralla Areas in Tawalama, Neluwa and Embilipitiya DS Divisions in Galle & Matara Districts
• 14 Grid Units Around Godakawela – Malwatta – Rakwana Areas in Godakawela DS Division in Ratnapura District
*See Appendix A, Figures 3 – 6
Figure 3. Grid Units in Kiriella and Kuruwita Divisions
Figure 4. Grid Units centred on Yatelamatta, Yakkatamulla and Nagoda Divisions
Figure 5. Grid Units around Panagoda-Dellawa‐Banagala-Millawa-Warralla divisions
Figure 6. Grid units around Godakawela-Malwatta-Rackwana areas