Lanka Graphite Raises $1.4M for Potential Graphite Mining Operations

Lanka Graphite Ltd (ASX:LGR) has entered into agreements to raise $1.42 million through the issue of unsecured convertible notes.
Funds raised will be used for working capital purposes and to further advance the current memorandum of understanding that refers to the potential commercialisation of the Sri Lanka government graphite mining operations.
According to the press release:

Subject to shareholder approval, Notes will be convertible into shares in the Company (‘Shares’) at a Share issue price of $0.125 per Share at the election of the Note holder. This represents a premium of 56% on the closing price of Shares as traded on ASX on Friday 30 September 2016.
Notes have a term of 1 year and any Notes not converted into Shares may be redeemed by the Note holder at the end of the term. Notes will accrue interest of 10% per annum until conversion to Shares or redemption by the Note holder. Interest on Notes is payable in arrears at the end of the 1-year term.
Executive Chairman of Lanka Graphite Mr Jitto Arulampalam commented, “It is very pleasing for us to have the support of our new Convertible Note investors as Lanka prepares for the most significant development stage of our company. This investment will provide us with the working capital to progress our MOU with the Government of Sri Lanka for the future development of Sri Lanka’s vein graphite mining industry.”
Click here for the full press release.