Applied Graphite Technologies (AGT) has acquired a past-producing graphite property, named Queen's Mine, in Sri Lanka.

The property is situated between AGT's existing Dodangaslanda Graphite Properties, and the combined assets will henceforth be referred to as the Queens Mine Complex (QMC).

The QMC is located on private land within the renowned vein graphite district featuring historical workings and natural exposures of vein graphite.

The Queen's Mine has a history of extracting high-grade graphite veins, previously achieving a production rate of 20 tonnes (t) per month.

Its former operator had plans to increase the production capacity to 3,000t annually.

The property has been the subject of extensive laboratory testing on its run-of-mine (ROM) tonnes, revealing high-grade graphite with a carbon content of more than 95%.

Underground workings provide access to at least six graphite veins spanning a combined width of 25m, with individual veins reaching up to 0.4m in thickness.

AGT is committed to prioritising the development of QMC with the aim of resuming bulk shipments of the high-grade vein graphite.

This initiative will follow the completion of mine permitting and further development of the prospect.

Additionally, AGT noted that it has granted 800,000 stock options at an exercise price of $0.15, valid for a five-year term expiring on 23 March 2029, to consultants, directors and officers of the company.

AGT president and CEO Don Baxter said: “We are extremely pleased to have acquired the QMC, thanks to our strategic in-country relationships.

“From my experience with multiple OEMs [original equipment manufacturers] regarding battery-ready graphite, they want to see the ability to produce large tonnages for their battery requirements.

“The QMC will enable us to plan near-term operations to illustrate potential from our properties to satisfy OEM requirements.”