Sydney’s Bora Bora acquires stake in Lankan graphite mine firm

The Sydney-based gra-phite exploration company, Bora Bora Resources, has entered into a binding Heads of Agreement that places the company on the fast track to potential commercial graphite and graphene oxide production in Sri Lanka.
The company will acquire a 50% interest in RS Mines (RSM), which owns the producing Queens Graphite Mine and associated graphene oxide production facilities.
Notably, the mine is located just two kilometres from the Kahatagaha Graphite Mine in central Sri Lanka that is surrounded by its Matale Graphite Project.
Queens Graphite Mine was a historical producer of exceptional quality, high grade natural crystalline vein graphite until it was abandoned in 1948. RSM acquired the mining lease in 2011 and is currently mining graphite.

Its ore has a run of mine head grade of up to 99% total graphitic carbon while RSM have developed a process to manufacture graphene oxide, the precursor and building block to graphene technology.
In addition, Bora Bora’s recent VTEM survey confirms a significant bullseye anomaly over the Queens Mine with a similar intensity to the nearby Kahatagaha Graphite Mine, which has been producing ultra high grade graphite for over 140 years.
“RS Mines are to be commended on their foresight in becoming an early stage leader in the value added graphite and graphene sectors,” Bora Bora Executive Director Chris Cowan said.
“We are confident based on the VTEM data, site trips, and ongoing discussions with RS Mines there is a strong likelihood that they are sitting on a high grade graphite deposit similar to that originally discovered at the Kahatagaha Graphite Mine. “If this is the case, then this accelerates our mine production plans and is another step in the right direction for Bora Bora Resources towards securing a pipeline of high grade vein graphite mines to supply the best quality natural graphite and graphene globally.”
Bora Bora is in the process of sourcing an appropriate drill rig to complete its due diligence on RSM and drill test other bulls-eye anomaly targets generated from the recently flown VTEM survey.
Under the terms of the Heads of Agreement, the company has paid RSM a non-refundable deposit of A$100,000, in order to exclusively conduct due diligence over the producing Queens Graphite Mine and its associated graphene oxide production facilities.
It will earn its stake in RSM by funding the commercial development of the Queens Graphite Mine and scale up of graphene oxide production facilities to meet the expected strong demand for graphene oxide from the battery, solar, high-end electronics and other industries.
Subject to Bora Bora making a potential commercially viable graphite discovery, the agreement also requires RSM to process any potential ore supplied by Bora Bora Resources from its other Sri Lankan graphite operations through its facilities on an arm’s length toll treatment basis.
The transaction consists of five key stages: Due diligence; Initial earn-in to 15% by paying four million BBR ordinary shares, two million performance shares, $400,000 payment to RSM shareholders and $650,000 investment into RSM; subsequent earn-in to 25% by investing $500,000 once CAPEX budget, business plan and production specifications have been agreed, a further $1.75 million scale up investment into RSM once minimum off-take and supply agreements have been entered into as well as $750,000 once plant and mine development is completed and has been commissioned; option for BBR to go to 50% will be negotiated between the two companies or determined by an independent valuation; and first right-of-refusal to acquire remaining 50% in RSM.
The Queens Graphite Mine was a historical producer of exceptional quality, high grade natural crystalline vein graphite until it was abandoned in 1948.
RSM acquired the 21 acre mining lease in 2011 and is currently mining graphite after re-commissioning the mine.
It has tested and assessed the quality of the high grade natural crystalline vein graphite, supplying potential off-take parties with graphite bulk samples. RSM converted graphite from the Queens Graphite Mine into graphene oxide, and supplied samples of graphene oxide to end users.
Notably, Graphene Batteries of Norway had in 2013 tested over 50 types of graphite from around the world and found that material from RSM yield the best end performance.
RSM have supplied graphite and/or graphene oxide to clients including a major supplier to the electronics industry with a market capitalisation in excess of $ 2 billion; Norway’s Graphene Batteries; and various research institutes including Manchester University.
Customers have indicated that RSM’s Sri Lanka graphite has superior electrical and conductivity properties when compared to flake graphite and synthetic graphite.
The same holds true for the graphene oxide produced from its ultra-high grade natural crystalline vein graphite, which demonstrates superior properties to other graphene products.
This suggests that the vein graphite from the region where Bora Bora’s Matale/Kurunegala Project is situated potentially hosts highly strategic graphene resources.
RSM also holds additional land in other potentially high grade graphite bearing areas of Sri Lanka.
Bora Bora has applied for all exploration ground around the operating mines in the region.
Besides the Queens Graphite Mine, which consists of 13 old pits, there are two other operating high grade graphite mines. Notably, these do not experience the watering problems and lower grades such as those found further to the south of Sri Lanka.
The company is focussed on exploring for and developing high grade vein graphite deposits. This will allow it to supply premium end products such as graphite, spherical graphite and graphene oxide to end users.
These products sell at a material premium to graphite produced from other parts of the world due to the unique properties and purity of Sri Lankan vein graphite
The proposed transaction with RSM adds another dimension in fulfilling its objectives.