CEYLON GRAPHITE TO CLARIFY TECHNICAL DISCLOSURES
Ceylon Graphite Corp. (TSX-V: CYL) (OTC: CYLYF) announced a review by the British Columbia Securities Commission (BCSC) revealing their technical report did not comply with National Instrument 43-101 standards. The report must be revised as the mineral resource estimate was not prepared according to industry practices. The BCSC stated that the previous report, dated December 6, 2021, is unreliable until an amended independent report is submitted.
- Ceylon Graphite's mining operations are positioned in Sri Lanka, known for high-quality graphite.
- The company holds an IML Category A license for its K1 mine, allowing for continued exploration and development.
- The technical report failed to meet NI 43-101 requirements, risking shareholder confidence.
- An amended technical report is necessary, indicating prior shortcomings in disclosure.
VANCOUVER, British Columbia, Dec. 13, 2021 (GLOBE NEWSWIRE) -- Ceylon Graphite Corp. (“Ceylon” or the “Company”) (TSX-V: CYL) (OTC: CYLYF) (FSE: CCY) announces that, as a result of a review by the British Columbia Securities Commission (the “BCSC”) of the Company's technical disclosure under National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and its Form 43-101F1 (the “Form”), the Company is issuing this news release to clarify certain disclosures previously made by the Company.
The technical report failed to follow the Form and does not provide the information required by the Form and it does not appear that the mineral resource estimate was prepared following industry standard practice in accordance with Form 43-101F1 and must be revised to follow the 2014 CIM Definition Standards.
As a result the review by the BCSC, the technical report reported on December 6, 2021 is contrary to NI 43-101, including the mineral resource estimate, and should not be relied on until an amended independent technical report is filed.
Qualified Person
Donald K.D. Baxter, P. Eng. is a Qualified Person under National Instrument 43-101 and has reviewed and approved the technical information provided in this news release.
About Ceylon Graphite Corp.
Ceylon Graphite is a public company listed on the TSX Venture Exchange that is in the business of mining for graphite, and developing and commercializing innovative graphene and graphite applications and products. Graphite mined in Sri Lanka is known to be some of the purest in the world and has been confirmed to be suitable to be easily upgradable for a range of applications including the high-growth electric vehicle and battery storage markets as well as construction, healthcare and paints and coatings sectors. The Government of Sri Lanka has granted the Company’s wholly owned subsidiary Sarcon Development (Pvt) Ltd. an IML Category A license for its K1 mine and exploration rights in a land package of over 120km². These exploration grids (each one square kilometer in area) cover areas of historic graphite production from the early twentieth century and represent a majority of the known graphite occurrences in Sri Lanka.
Further information regarding the Company is available at www.ceylongraphite.com
Don Baxter, Chief Executive Officer
info@ceylongraphite.com
Corporate Communications
1 604-765-8657
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
FORWARD LOOKING STATEMENTS:
This news release contains forward-looking information as such term is defined in applicable securities laws, which relate to future events or future performance and reflect management’s current expectations and assumptions. The forward-looking information includes statements about Ceylon Graphite’s grids, Ceylon Graphite’s plans to undertake additional drilling and to develop a mine plan, and to commence establishing mining operations. Such forward-looking statements reflect management’s current beliefs and are based on assumptions made by and information currently available to Ceylon Graphite, including the assumption that, there will be no material adverse change in metal prices, all necessary consents, licenses, permits and approvals will be obtained, including various Local Government Licenses and the market. Investors are cautioned that these forward-looking statements are neither promises nor guarantees and are subject to risks and uncertainties that may cause future results to differ materially from those expected. Risk factors that could cause actual results to differ materially from the results expressed or implied by the forward-looking information include, among other things, an inability to reach a final acquisition agreement, inaccurate results from the drilling exercises, a failure to obtain or delays in obtaining the required regulatory licenses, permits, approvals and consents, an inability to access financing as needed, a general economic downturn, a volatile stock price, labour strikes, political unrest, changes in the mining regulatory regime governing Ceylon Graphite, a failure to comply with environmental regulations and a weakening of market and industry reliance on high quality graphite. Ceylon Graphite cautions the reader that the above list of risk factors is not exhaustive.
FAQ
What are the implications of the BCSC review for Ceylon Graphite (CYLYF)?
When was the technical report in question released by Ceylon Graphite (CYLYF)?
What actions must Ceylon Graphite (CYLYF) take following the BCSC review?
