CEYLON GRAPHITE CORP. ("CYL")
BULLETIN TYPE: Property-Asset or Share Purchase Amending Agreement
BULLETIN DATE: April 15, 2024
TSX Venture Tier 2 Company
TSX Venture Exchange has accepted for filing documentation with respect to the amendment of certain payment obligations owed under a share purchase and sale agreement, dated September 12, 2012 and as amended thereafter (the "Initial Agreement"), pursuant to an amending agreement (the "Amending Agreement") between the Company, Plumbago Refining Corp BV (a wholly owned subsidiary of the Company, (the "Subsidiary")) and Sarcon Development (Private) Limited (an entity indirectly owned by the Company, "Sarcon") and an arm's length party (the "Vendor"). Sarcon holds 116 high-grade graphite grids in Sri Lanka (the "Property").
Pursuant to the terms of the Amending Agreement, the Company will issue up to US$1,625,000 to the Vendor in shares upon the meeting of certain milestones (with a floor price of $0.05 per share) the Subsidiary shall pay US$250,000 to the Vendor within ten business days of obtaining Exchange approval for the Amending Agreement, and Sarcon shall pay US$5,000 per month to the Vendor until the date of the last issuance of shares (this monthly amount paid by Sarcon shall be subtracted from the equivalent dollar value of the shares to be issued by the Company, up to a maximum of US$125,000). The aforementioned consideration is in lieu of the US$1,000,000 outstanding under the Initial Agreement to the Vendor, whereby the Subsidiary was to acquire all the outstanding shares of Sarcon.
Please refer to the Company's news releases dated February 7, 2023 and March 7, 2023 for further details.
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