Ceylon Graphite (“Ceylon”) (TSX-V:CYL) (OTC:CYLYF) (FSE:CCY) announces it has signed an agreement to acquire all of the issued and outstanding shares of JADS Enterprises (Private), a local Sri Lankan mining company that has five graphite exploration Grid units (“GRIDs”) and an exploration license in the Malsiripura/Kurunegela region in central Sri Lanka.
The acquisition of JADS will take the total number of GRIDs under Ceylon’s umbrella in Sri Lanka from 116 to 121. Historical drilling records, from over 30 exploration holes at the Panliyadda sites, suggests the potential for high quality vein/lump graphite in these 5 GRIDs.
Upon completion of the acquisition, Ceylon intends to conduct a limited drilling program on the Panliyadda site of the Malsiripura property to confirm the quality and quantity of the graphite mineralization, and develop a mine plan.
Upon completion of the drilling program, and provided the results of that program are favourable, Ceylon intends to apply for a Class B Mining License, with the ultimate goal of establishing mining operations.