Under this initiative Lanka Graphite has been offered 49 percent shares of Lanka Mineral Sands Limited to continue its mineral explorations in the country, reliable sources said.

This agreement was reached at meeting held at temple trees in Colombo Presided over by Prime Minister Ranil Wickremesinghe and attended by Minister Rishad Bathiutheen and several senior officials along with top officials of Lanka Graphite.

Lanka Graphite has already completed a feasibility study on development options for the vein graphite and graphene industry in Sri Lanka. This could involve graphite assets owned by the government.

It will take over the management of Lanka Mineral Sands Limited which is a company fully owned by the Government of Sri Lanka which is the successor to Ceylon Mineral Sands Corporation established in 1957 under the Industrial Corporation Act.

Lanka Graphite (ASX: LGR) formerly known as Viculus Limited (ASX: VCL) successfully raised $3.848 million dollars via a placement of 19,240,000 shares at $0.20 to complete an off-market takeover bid for Euro Petroleum Limited (Euro).

As a result, post listing on the ASX, Lanka Graphite (Lanka) now holds several granted exploration licences which cover existing Sri Lankan Graphite mines that have historically produced very high grade lump-style graphite