Graphene owns exploration application licenses for 100 metric grid units, covering approximately 100 square kilometers, located in Sri Lanka.
Under the LoI, Elcora must pay $2.2m and issue its 6,300,000 common shares on the closing date in order to acquire the shares of Graphene.
Elcora president and CEO Troy Grant said Graphene’s high-grade graphite prospect is expected to bring substantial value and growth to the Elcora.
"Elcora focused on past graphite producing areas in Sri Lanka with known graphite occurrences and chose to acquire these Graphite Claims in Sri Lanka," Grant added.
The transaction is subject to various approvals.
"Sri Lankan graphite should enable Elcora to minimize costs and target high end graphite markets," Grant continued.
"Our experienced international team will focus squarely on unlocking the potential of this graphite property for the shareholders in the coming months."
