The mineral lease, which covers 200 acres, involves both the surface as well as the mineral rights over the historic Bama Mine.
A mineral exploration lease has also beeen signed by the company on several parcels comprising 1,160 acres adjacent to the Bama Mine.
Alabama Graphite president and CEO Ron Roda said: "The Bama Mine is an acquisition that we have been pursuing for several months.
"Our geologists were impressed with its potential literally from the moment they set foot on the property. Whereas our flagship Coosa Project began as a green-fields exploration play, the Bama Mine’s history of production suggests it has the potential to quickly move forward."
Alabama Graphite carried out airborne Time Domain Electromagnetic (TDEM), magnetic and radiometric surveys over the area of interest in Chilton County and preliminary channel samples were collected for both graphitic carbon analyses and metallurgical testing.
The compnay is due to start exploration program comprising additional surface sampling, ground-based GEM2 geophysical surveys and sonic drilling.
