Bora Bora Resources Completes Placement to Strategic Financial Investor Group
March 24, 2014 (Source: Bora Bora Resources) — Highlights:
- Funds raised from leading global institutional alternative asset manager
- Placement of 3 million shares at $0.28 each to raise $840,000
- 1-for-3 attaching unlisted option, strike price $0.40, expiring 31/3/17
Sri Lankan graphite explorer, Bora Bora Resources (ASX: BBR) (the “Company”) is pleased to announce it has completed a placement of 3 million fully paid ordinary shares at $0.28 each to raise a total of $840,000 before costs. The placement also included a 1-for-3 free attaching unlisted option, exercisable at $0.40 anytime up until 31st March 2017.
Executive Director Chris Cowan commented:
“We are pleased to have successfully raised these funds which will be applied to our high grade graphite projects in Sri Lanka. The placement to investors, including a leading global institutional alternative asset management firm, demonstrates strong support for the potential of our Sri Lankan exploration assets and the overall sector.
Our strategy to explore for graphite deposits grading 90% or greater total graphitic carbon as the first mover in Sri Lanka is being recognised and validates our plan to maximise value for our shareholders this way.”
The funds raised under the placement will be applied towards further exploration work at the Company’s Sri Lankan assets including the Matale Graphite Project and for working capital purposes.
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The pricing of the placement represents a premium to the 30 day VWAP.
Veritas Securities Limited acted as corporate advisor to the Company and Wentworth Securities acted as broker to the Placement offer.
About Bora Bora Resources
Bora Bora Resources Limited (ASX: BBR) is a Perth-based graphite exploration company focused on the Matale Graphite Project in Sri Lanka. BBR was listed on the Australian Securities Exchange on 11 May 2012.
BBR has acquired a 75% interest in the Matale Graphite Project near Kandy in Sri Lanka, through a deal with Plumbago Mining Pty Ltd announced in 2012. The Matale project is situated on 145km2 of tenements and applications surrounding the historic Kahatagaha Graphite Mine (KGM), which has operated since 1872 and produced more than 300,000 tonnes of high-grade graphite. BBR has added to its Sri Lankan graphite project portfolio with the granting of licences for the Paragoda North and Paragoda South Graphite Projects in central Sri Lanka.
BBR has also established a project portfolio in southern Sri Lanka with the Baduraliya, Neluwa and Ambalangoda Graphite Projects.
About Sri Lankan Graphite
Vein graphite is known under various names including crystalline vein, Plumbago, Sri Lankan graphite, and Ceylon graphite. The name “Sri Lankan” and “Ceylon” are commonly used for vein graphite since the island nation of Sri Lanka (formerly Ceylon) is the only area to produce this material in commercial quantities.
Serious mining and exportation of Ceylon graphite began about 1824, however the unusual deposits of Ceylon have been known since the middle of the 1600s.
Due to the natural fluid-to-solid deposition process, vein graphite deposits are typically above 90% pure with some vein graphite reaching 99.5% graphitic carbon in the “as found” state. Th is level of purity is possible because the deposition of carbon occurs as a precipitation of solid carbon from a geologic fluid that is traversing emplaced rock. There is no intimate mixing or association of the graphite with country rock as in conventional flake graphite deposits where the non-carbon and carbon phases may be deposited contemporaneously.
Typical veins measure from centimetres to nearly 2m in thickness with the highest purity material being located toward the centre of the vein away from contact with the wall rock. Vein graphite is mined using conventional shaft or surface methods typically used to mine vein-type deposits.
Vein graphite is available in sizes ranging from 8cm lumps to powder as fine as 5-micrometers. Products covering the range of purity from 94% graphitic carbon to 99% graphitic carbon are commonly available. In many applications vein graphite may offer superior performance since it has slightly higher thermal and electrical conductivity, which result from its high degree of crystalline perfection. Vein graphite also has the highest degree of cohesive integrity of all natural graphite materials. High coh esive “energy” means that vein graphite is easy to mold and can be formed into solid shapes without the aid of a binder addition.
[Source: Asbury Carbons – The world’s largest independent processor and merchandiser of graphite]
Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>