Torch River Resources Ltd. (TSXV:TCR) announced that it has entered an arm’s-length, non-binding purchase and transfer agreement with Han Tal Graphite (Pvt) Ltd., a Sri Lanka-based holding company. Under the agreement, Torch River will acquire 113 lump graphite mining claims with 56 historical mines, as well as exclusive exploration licenses “to explore and develop its wholly owned 113km2 lump graphite claims … in south-west Sri Lanka.”
As quoted in the press release:
The Han claims have been described by the Sri Lankan Geological Survey and Mining Bureau (GSMB) as comprising some of the best graphite areas in the country. Sri Lanka is known to be underlain up to 90% by Proterozoic high grade metamorphic rocks with Proterozoic sediments, particularly along the coastal regions. The proposed Han claims are geologically part of the Highland Complex (HC) of Sri Lanka and consists entirely of granulite grade Proterozoic metamorphic rocks. Rocks in and around the project on a regional scale are charnocktic gneiss, hornblende biotite gneiss, garnet sillimanite graphite gneiss, grantic gneiss and minor calc gneiss. The proposed project areas are mainly concentrated within 1-4km wide charnocktic gneiss and hornblende biotite gneiss rock bands, and in some cases several kilometers long with NW-SE trending rock bands.
Paul Ogilvie, CEO of Torch River, commented:
[W]e are extremely pleased to acquire such a vast amount of grids in these prime graphite regions. Our entire graphite team and our Board of Directors believe this is an ideal fit for the Company and that the Han project will further enhance and differentiate Torch River towards our goal to be one of the leading emerging lump graphite producers in the world today. Our goals in this regard are clear: build a great company by leveraging the clear economic advantages associated with lump graphite; create outstanding value for our shareholders; consistently exceed our customer’s expectation with new and innovative graphite products; and create fulfilling opportunities for our employees and the communities in which we work. We take all of these responsibilities seriously and are confident that our new relationship with Han Tal Graphite is a positive step towards achieving all of those goals.