MRL Corporation launches $1.48M entitlement issue to fund Sri Lanka graphite drilling
The company's share price has been on a surge of late, lifting 125% since February to $0.075.
Funds raised will also be used for capital equipment acquisitions, electromagnetic survey and geophysical Interpretations, metallurgical studies and other exploration activities.
The company had recently reported greater than 85% total graphitic carbon results from unprocessed, remnant graphite stockpiles at its Sri Lankan graphite projects.
Results received via XRF and ICP have been consistent under both methods and show the unprocessed remnant low grade samples contained around 85%, which was matched when tested for Loss on Ignition.
The initial results are significant and confirm the high quality of MRL's Sri Lankan graphite.
Further testing will be undertaken by Nagrom on remnant graphite samples to establish the metallurgical process required to further upgrade the TGC content of the material to above 85%.
Drill core samples of high grade graphite grading 95% TGC will also be tested to establish the most efficient processing route.
MRL is offering shareholders four new shares priced at $0.025 each for every five shares that they own.
This is fully underwritten by CPS Capital Group Pty Ltd.
In addition, should the shortfall be less than 20 million shares, the company will offer the underwriter a number of shares equal to the difference between 20 million shares and the total available shortfall.
This Top-up Offer could raise up to an additional $500,000.
Any proceeds raised from the Top-up Offer will be applied towards toward accelerating the exploration work to be conducted on the company’s Sri Lankan project areas.
This work would include electromagnetic surveys and defining additional drill hole locations.
MRL has established “first mover” status in southern Sri Lanka, with four highly prospective lump/vein graphite development projects,
Lump or Vein graphite is considered to be one of the rarest, commercially valuable, and highest quality types of natural graphite.
It is currently only actively mined in Sri Lanka, the only country that produces commercial quantities of high grade vein graphite with carbon content greater than 90% carbon as graphite.
The company is establishing a major tenement position covering this type of graphite, which has effectively been pre-treated by nature to contain extremely high levels of carbon purity that attract premium pricing.
Current programs are focused along 650 metres of historic mine workings on the Pandeniya to Wallagala strike-line within the Warakapola Project.
MRL’s Sri Lanka project work is not greenfield exploration; all projects areas have extensive historical workings and remnant graphite.
MRL’s strategy is to convert at least one license to a Mining Licence within the next 12 months.
The fully underwritten $ 1,485,462 entitlement offer will provide MRL Corporation with the funding to progress exploration on its highly prospective Sri Lanka graphite assets.
This may be accelerated should the Top-Up Offer be carried out.
Earlier in the month Proactive Investors put a Speculative Buy on MRL Corporation when its shares were trading at $0.03, with a valuation of $0.09 to $0.10 on the stock due to early production potential.
MRL Corporation last traded at $0.08, and is therefore up 125% since we rated the company a Speculative Buy.
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