MRL Corporation reports more success with its strategy to become a major high-grade graphite producer in Sri Lanka after agreeing to acquire an extensive parcel of tenements hosting graphite mineralization and historic workings. The new exploration licences cover 5600 hectares, effectively doubling MRL’s total land holding on the island.
The acquisition agreement is subject to the completion of due diligence by MRL, including inspection of the historic workings and the areas of known graphite mineralization.
The agreement involved MRL issuing 3 million MRL shares to the vendor, which will be subject to escrow for 24 months from the time of issue. MRL will issue a further 3.6 million shares upon either the first conversion of one of the new exploration licences to a mining licence or the second anniversary of the issue of the first shares, whichever comes first.
These tenements add to MRL’s growing portfolio of high-grade graphite assets in Sri Lanka. Metallurgical tests are currently under way on bulk samples from MRL’s Aluketiya and Warakapola Pandeniya high-grade graphite projects as part of the company’s plan to fast-track production and cash flow.
The company is also refurbishing selected shafts at Pandeniya for underground exploration and at Aluketiya Mining Licence to commence mining. Application is also being made to convert the Pandeniya area to an industrial mining licence.
MRL believes it will be in a position to begin ramping up commercial production later next year.