Located in Meegahatenna within the Walallawita District approximately 85km from Colombo, the project has the potential for graphite veins which extend over large distances.
MRL has purchased the lease covering Aluketiya, providing it with the right to explore, develop and mine the graphite, as part of the deal.
A lease fee of $3,500 a month will be paid by MLR during the exploration phase.
MRL will pay a 10% royalty which will be based on sales once the production begins.
With the acquisition, MLR expands its portfolio of high-grade vein graphite licenses in Sri Lanka, where it seeks to develop multiple high grade production hubs.
Until the operation was halted in 1960’s, the graphite mine had produced high-grade graphite for several decades and extensive veins of high-grade graphite are visible from surface.
However, the area has not been subjected to any modern exploration techniques.
The company has already begun project planning on the work needed to resume operations on the mine.
Additionally, MRL has identified minor zones of graphite during drilling at its Warakapola graphite project in Sri Lanka.
