Sri Lankan graphite company MRL Corporation (ASX:MRF) is heading to market with a capital raising, with the ASX granting the company a trading halt to prepare.
MRF has been busy on the ground in Sri Lanka, and recently secured a new high-grade graphite project with a mining licence, providing the potential for a path to production and early cashflow.
Historical records have indicated that the graphite was of such high grade that the material would be direct shipping quality.
Prior to the new project, the company had over 6,300 hectares of Exploration Licences that contain more than 200 historical adits and shafts.
These also host a large quantity of remnant graphite dumps, indicating that a reasonably large volume of vein graphite was produced from numerous artisanal pits during the 1890’s to 1950’s.
Sri Lanka is renowned the world over for being the only producer of crystalline vein or lump graphite, which is the highest quality of naturally occurring material.
The halt will remain in place until the opening of trade on Monday 8th September 2014, or earlier if an announcement is made to the market.
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