Ceylon Graphite Announces Amended and Restated Agreement For Acquisition of Sarcon Development

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[{"type":"text","content":" Vancouver, BC, Feb. 07, 2023 (GLOBE NEWSWIRE) -- Ceylon Graphite Corp. (“Ceylon Graphite” or the “Company”) (TSX-V: CYL) (OTC: CYLYF) (FSE: CCY) today announced that it has entered into an amended and restated agreement dated February 4, 2023 (the “Restated Agreement”) with a private vendor (the “Vendor”) based in Sri Lanka to amend and restate the terms of a purchase agreement dated September 12, 2012 , as amended (the “Initial Agreement”), whereby the Company’s wholly owned subsidiary incorporated in Curacao, Plumbago Refining Corp BV (“Plumbago”), acquired Sarcon Development Pvt Ltd. (“Sarcon”). Sarcon holds 116 high-grade graphite grids in the country of Sri Lanka, which grids represent the Company’s primary focus for exploration and development. The Initial Agreement required an outstanding cash payment of US$1,000,000 to be paid to the Vendor to satisfy Plumbago’s payment obligations to the Vendor for the acquisition of Sarcon. Under the Restated Agreement, the Company has agreed to issue to the Vendor an aggregate total amount of common shares (the “Common Shares”) of the Company equal to an aggregate sum of US$1,625,000 upon meeting the following milestones:       1)   Within 10 business days of the approval of the TSX Venture Exchange (the “TSXV”) for the amended terms of the transaction contemplated by the Restated Agreement, an amount of Common Shares equal to US$250,000 (the “First Issuance”), valued using the greater of, (A) the five day volume weighted average price of ‎‎the Common Shares on the TSXV for the five day consecutive trading ‎‎day period ending on the trading day immediately preceding the date of issuance ‎‎of such Common Shares, provided that the five day volume weighted average price does not differ by more than five percent of the volume weighted average price of the Common Shares for the six months preceding the date of issue, and if there is a variance greater than 5% the lower of the two averages will be used, and (B) the “Discounted Market Price” (as such term is defined in the policies of the TSXV) of the Common Shares on the day prior to the issuance of the Common Shares, with such price to be not lower than C$0.05 per Common Share (the “Valuation Formula”).      2)   Within fourteen 14 business days of r...

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