Under the terms of the LoI, which is subject to approvals, Elcora will issue 5,066,667 common shares of Elcora to acquire the common shares of Sakura and 7,856,000 warrants to purchase common shares of Elcora.
With the transaction, Elcora will be the operator of the Ragedara graphite mine located in Sri Lanka, with the intention of beginning production.
The property comprises unrestricted exploration license covering 4km² and a mining license for unlimited monthly production.
The feasibility study, completed for Sakura for the property, is due to be verified by Elcora and there is no certainty the proposed operation will be economically viable.
Separately, Elcora terminated its previously signed Letter of Intent with Graphene to acquire exploration application licenses for 100 metric grid units for graphite located in Sri Lanka.
