Applied Graphite Technologies acquires Sri Lanka’s Queens Mine
The Morning: Applied Graphite Technologies Corp. announced that it has purchased the past-producing Queen’s Mine in Sri Lanka. The property is centrally located between AGT’s Dodangaslanda Graphite Properties. The combined properties will be called the Queens Mine Complex (QMC).
The Queens Mine was reported to be extracting high-grade graphite veins at a rate of 20 tonnes per month. The former operator had intentions to ramp up production to 3,000 tonnes per year. Adits which provided access to the underground workings expose at least six graphite veins over a total width of 25 metres, with veins varying in thickness up to 0.4 metres.
The technical information in this news release has been prepared by Don Baxter, P.Eng., a ‘qualified person’ as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101).
The former operator had done extensive laboratory testing on its run-of-mine (ROM) tonnes which consisted of high-grade graphite +95 Cg. Vein graphite direct from the mine will sell for $ 2,000 per tonne. The ROM vein graphite, when upgraded to battery-quality graphite, sells for between $ 8,000-12,000 per tonne. The demand for battery ready graphite will reach five million tonnes per annum by 2030, according to Benchmark Mineral Intelligence.
AGT plans on making the QMC a priority to re-commence bulk shipping of the high-grade vein graphite material once it has completed its mine permitting and development on the prospect.
“We are extremely pleased to have acquired the QMC, thanks to our strategic in-country relationships,” commented President, and CEO Don Baxter. “From my experience with multiple OEMs regarding battery ready graphite, they want to see the ability to produce large tonnages for their battery requirements. The QMC will enable us to plan near term operations to illustrate potential from our properties to satisfy OEM requirements.”
AGT has granted 800,000 stock options at an exercise price of $ 0.15, with a five-year term expiring 23 March 2029 to consultants, directors, and officers of the company.
Applied Graphite Technologies is developing the Queens Mine Complex in Sri Lanka. The QMC is on private land in the heart of the vein graphite district, with historical workings and vein graphite outcrops. Vein graphite is naturally high grade (+95% carbon content in the ground) and does not require primary processing. Testing of vein graphite in lithium-ion battery anodes has shown very high capacities, performing better than synthetic graphite. Natural vein graphite has a far superior ESG footprint than synthetic and is cheaper without compromising performance.
OSL take:
Sri Lanka’s minerals sector remains an untapped market that is yet to be harnessed of its full potential. The increasing interest in the minerals sector and the business potential is witnessed in this latest acquisition. Given the growth in overall economic activities and the country’s path towards becoming an emerging business destination in the South Asian region, Sri Lanka provides the ideal business platform for foreign businesses/investors to explore the growing opportunities in the country. Apart from the country’s strategic positioning in the Indian Ocean region, the many trade agreements as well as trade concessions enjoyed by Sri Lanka with other countries have further boosted the opportunities in the trading sector. Foreign businesses/investors looking at entering the country’s minerals sector could benefit from the business conducive environment in Sri Lanka and its strong trade ties. Foreign businesses/investors could therefore explore the expanding opportunities in Sri Lanka’s minerals sector.
| Article Code : | VBS/AT/20240408/Z_2 |