Lanka Graphite on Friday commenced trading on the ASX under the ticker LGR, following the completion of the merger of Viculus and Euro Petroleum. The firm holds exploration licences for high-purity graphite sites in Sri Lanka, and hopes to mine it for use in “new graphene technology”. The firm also appointed Jitto Arulampalam as its new Executive Chairman.
In the listing, Lanka received subscriptions for $3,848,000 with the issue of 19,240,000 shares. It commenced trading on the ASX with a total of 70M shares on issue at $0.20 per share.
The listing also completes the company’s renaming to Lanka Graphite. In a market announcement, it said this was to “reflect its focus as an explorer for high-grade lump- and vein-style graphite in Sri Lanka”.
The firm holds five exploration licences and three exploration licence applications over 242km
Lanka confirmed it would immediately conduct geological surveys of its sites. It said it would also start dewatering mining shafts, begin core drilling to test targets, and undertake geological modelling to estimate the scale of its graphite resources.
The firm also said it would start to engage with the offtake and end-user market.
High-purity graphite and graphene
Lanka said it would concentrate on the Asian market, and reiterated it would concentrate on high-purity graphite.
A number of exploration companies have recently moved into the higher purity graphite markets as general graphite prices fall. Some mining analysts say new applications for high-purity graphite, which can also be used as feedstock for graphene, will lead to higher demand and prices over the next decade.
High-purity graphite could be used, Lanka said, in “high-tech batteries, electronic componentry and for application to new graphene technology”.
In related news Lanka appointed Jitto Arulampalam Executive Chairman of the company.
Arulampalam is currently Chairman of ASX-listed Progen Pharmaceuticals, and was Chairman of Euro Petroleum during the takeover.
He was previously Chairman of ASX-listed companies Fortis Minig (now Kazakhstan Potash Corporation), Greater Western Exploration, Medic Vision and ATOS Wellness.
Lanka also announced Derek Lo had resigned as company secretary.