Bora Bora Resources (ASX: BBR) has made a small raise of $840,000 by issuing 3 million fully paid ordinary shares at $0.28 per share to a fund manager for additional exploration at its Sri Lankan graphite project.

Notably, the shares were placed to an institutional alternative asset manager - who was not named.  A 1-for-3 attaching unlisted option, strike price $0.40, expiring 31/3/17 was also part of the placement.

The raising shows support for the potential of graphite production from Sri Lanka which historically has produced vein or lump graphite that is the highest quality of naturally occurring material in the world.   

The quality of the graphite produced had a purity level in excess of 90%C often with little upgrading or processing equired.

Bora Bora Resources recognition follows that of MRL Corporation which is “on the ground” operating in southern Sri Lanka with four highly prospective vein graphite development projects.

MRL is looking to convert at least one license to a Mining Licence within the next 12 months with project capacity to move to early production of graphite in 2015.

Meanwhile Bora Bora will look to explore further at its Sri Lankan assets including the Matale Graphite Project.