The Directors of Bora Bora Resources Limited (BBR) are pleased to announce that the Company has signed a binding Heads of Agreement to acquire a 75% interest in a suite of tenements surrounding one of the world’s oldest producing and highest grade vein graphite mines near Kandy, Sri Lanka. BBR will acquire 100% of the issued capital of Plumbago Mining Pty Ltd which holds a 75% shareholding in Plumbago Lanka (Pvt) Limited (balance held by a Local Partner as required under Sri Lankan Law). Plumbago Lanka (Pvt) Limited holds the tenements surrounding the producing Kahatagaha Kolongaha mine which has been in production since 1872 and produced in excess of 300,000T of graphite at 90% or greater TGC. Key Terms of the Acquisition include: A cash deposit of $100,000 payable to the vendor of Plumbago Mining Pty Ltd; An additional $400,000 to be paid upon completion of the acquisition; 5,000,000 vendor shares in BBR to be issued upon completion of the acquisition; In the event Plumbago Lanka (Pvt) is granted a minimum of 50km2 of additional graphite bearing tenements in Sri Lanka, an additional $500,000 is payable to the vendor subject to completion of the acquisition.
Chairman Patrick Ford commented: “We are very excited by the acquisition and its high grade nature which is not comparable to any other region in the world. This acquisition supports the Company’s strategy to acquire high quality projects that have the potential to build significant value for shareholders.”
Bora Bora Resources is owner of the historical St Arnaud gold field in Victoria, which records show from 1864 to 1916 produced a total of 358,720oz of gold at an average grade of 15.8g/t Au with the major share of the production coming from the Lord Nelson mine.
