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Testwork confirms premium graphite product at Bunyu North
Excellent results returned from Bunyu North product samples, including C content 99.6% and O content 0.08% with no impurities found – a highly ordered, defect-free material
• Testwork conducted by US based off-take partner Nano Graphene (NGI) – renowned graphene expert confirms the quality across the entire Bunyu Project area
• Bunyu North is the focus for Stage 1 and Stage 2 development
• Bunyu graphite continues to be validated as a premium quality product across a range of markets by well-credentialed offtake partners NGI and CNBMGM
Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to advise that recent testwork undertaken on graphite product samples from the Company’s flagship Bunyu Graphite Project has further confirmed the premium quality of the products derived from the Project’s graphite.
Importantly, the purified graphite and graphene produced from Bunyu product samples by Volt’s North American offtake customer NanoGraphene Inc. (“NGI”) is of excellent quality and high purity. NGI is using very clean and environmentally friendly processing technology for their graphene production. Of note the purified graphite and graphene was produced using physical processes with the addition of water only and without the use of damaging acids.
As previously advised (ASX Announcement 5 October 2017), initial test work undertaken by NGI confirmed that the Bunyu product is among the highest quality graphite flakes NGI had tested to date and is eminently suited to graphene production. Graphene is a one-atom-thick sheet of carbon atoms
Positive Testwork Results for Namangale
- Testwork on Namangale North Concentrate highlighted its suitability for producing expandale graphite
- Enhances the scalability and commercial viability of the entire Namangale deposit as a primary exspandable graphite supplier
- Excellent expansion results for fine flake and powder
Volt Resources Limited (ASX : VRC), (Volt or the Company) is please to report that ongoing testwork on Namangale North Graphite
concentrate by the German metallurgical laboratory which previously reviewed Namangale South samples confirms its suitability for making expandable graphite.
Positive Testwork Supports Recent Offtake Agreement
Inaugural testwork undertaken on Namangale North Graphite concentrate by the German metallurgical laboratory which previously tested Namangale south samples, confirmed its suitability for producing expandable graphite for wide variety of applications
including flame retardant building material, graphite foil and flame retardant textiles which require finer expandable flake and powder graphite.
Share Purchase Plan Closed Heavily Oversubscribed
- $2,338,975 raised via oversubscribed Share Purchase Plan
- Funds raised will be used to fund the completion of the Feasibility Study for the Stage 1 development of the Bunyu Graphite Project
The SPP was strongly supported by Shareholders and was heavily oversubscribed with the Company receiving applications totalling $2,338,975. In light of this strong demand from Shareholders, the Company’s Board of Directors has elected to increase the original target which was set at $1,500,000 and accept all valid applications received to allow all eligible Shareholders who submitted valid applications to fully participate in the Offer.
The Company will now proceed to issue shares to the valid applicants of the SPP at an issue price of 2.1 cents per share, being a 20% discount to the 5-day Volume Weighted Average Price (VWAP) of shares traded on the ASX prior to the date of issue.
Use of Funds The funds raised will be deployed towards the following key objectives:
- Complete the feasibility study for the Stage 1 Bunyu graphite project development;
- Continue development funding negotiations, obtain project development approvals, advance offtake and cooperation agreements into binding agreements, enter into engineering and construction agreements and other material contracts for the Stage 1 development;
- Support in-country costs associated with the Project; and
- Fund general corporate and other expenses
3 November 2017
VOLT TO RAISE $900,000 THROUGH TOP-UP PLACEMENT
• Recently completed Share Purchase Plan raised $2.338 million – additional funds from top-up placement take total funds raised to over $3.2 million
• Top-up placement facilitated through new shares issued at 2.1 cents – same price as SPP
• Funds will be deployed to complete the Stage 1 feasibility study and accelerate exploration and drilling program at the flagship Bunyu Graphite Project in Tanzania Graphite exploration and development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to advise that following the recently completed Share Purchase Plan (“SPP”) (see ASX announcement dated 1 November 2017), which raised $2.338 million, the Company has received firm commitments to raise an additional $900,000 via a Top‐up placement (“the placement”) from sophisticated and professional investors.
Funds raised from the recently completed Share Purchase Plan and subsequent placement will be used to complete the feasibility study and associated activities for the Stage 1 Bunyu graphite project development and assist in accelerating exploration and drilling at the flagship Bunyu Graphite Project.
Patersons Securities Limited underwrote the SPP and received no shortfall due to strong take up by Volt shareholders. The Company is pleased to advise Patersons have agreed to facilitate the placement through the issue of new shares at an issue price of 2.1 cents per share, the same price as the SPP.
The placement shares are planned to be issued in the week beginning Monday, 6 November. This placement of shares is being undertaken using the Company’s existing issuance capacity under ASX Listing Rule 7.1.
Volt’s Chief Executive Officer, Trevor Matthews, commented, “We are very pleased with the strong support received from both existing shareholders and new investors during the SPP and subsequent placement, as it further supports Volt’s strategy to develop our world-class graphite deposit in Tanzania.
“Volt now has the requisite funding flexibility to scale-up its exploration and drilling activities at the Bunyu Graphite Project, as we target the completion of a feasibility study on the Stage 1 Development of Bunyu, which is expected to be delivered early next year.
“We are also actively progressing the recently announced Stage 1 funding process with Exotix Capital for the development of Bunyu and look forward to providing further updates on this process and other funding discussions in due course.”
For and on behalf of Volt Resources Limited
Chief Executive Officer
For further information please contact: Trevor Matthews Chief Executive Officer Tel: +61 8 9486 7788
Volt to Pursue US$30m Tanzanian Bond Issue
Volt appoints experienced, well-qualified investment banking firm Exotix Capital to raise up to US$30 million via Tanzanian Bond Issue • Proposed funding to be deployed early 2018 to complete Stage 1 development of Bunyu Graphite Project targeting production of 20,000tpa of graphite products by late 2018
- Exotix is a market leader in structured finance packages for natural resource projects in African economies – funds sourced from African institutions, family offices and regional credit funds
- Analysts expect soaring demand for graphite as a key component of lithium-ion batteries in electric cars, in addition to other key applications such as fire retardant building materials
- Volt’s Bunyu project is Tanzania’s largest graphite mineral resource
If successful, the proposed bond financing will ensure that project development funding will be undertaken with minimal equity dilution.
Exotix will act as structuring, financial and placement advisor and will leverage its significant East African networks to complete the proposed Issue, with a focus on the Tanzanian, Kenyan and Ugandan capital markets, respectively.
Volt will continue to consider other funding proposals it is currently negotiating for the Stage 1 development of the Bunyu Project to ensure that momentum moving towards production by year end 2018 is maintained. Tanzania and Mozambique are home to Africa’s largest deposits of graphite, a mineral increasingly in demand because of its variety of uses, including as a fire retardant in building materials and for use in batteries for powering electric vehicles.
The manufacture of lithium-ion batteries used in electric vehicles requires nine times more graphite than lithium.1 By 2020, analysts estimate the demand for flake graphite will exceed 500,000 tonnes per annum, largely due to an approximate 400% increase in battery graphite feedstock demand from 2016.
Volt’s Banyu Graphite Project is the largest JORC mineral resource deposit in Tanzania and can produce graphite suitable for both battery production and building material uses. As part of the proposed bond raising process, Volt will, upon completion, have the bonds listed on the Dar es Salaam Stock Exchange (“DSE”) in Tanzania.
The estimated timeframe to complete a DSE listing is 8-12 weeks. Volt’s Chairman, Asimwe Kabunga, commented: “Volt is pleased to be partnering with the team at Exotix over the coming months as we pursue an incountry bond issue in Tanzania to fund the initial Stage 1 development of our Bunyu graphite project. “Exotix brings to the table an extensive network of East African investors and a comprehensive strategy to access these local parties who have a strong appetite for large-scale resource projects such as Bunyu. “We look forward to continuing to provide shareholders with further funding and operational updates in due course.”
Exotix’s CEO, Duncan Wales, commented: “We are happy to be working on such an important project with Volt to support Tanzania’s growth as a major producer and exporter of natural graphite amid increasing demand for the mineral.” About Exotix Capital Since 1999, Exotix has been enabling international investors to access the most dynamic and complex financial markets and economies in the world.
Exotix specialises in equity and fixed-income markets, and investment banking, throughout developing economies in Africa, Central, South and Southeast Asia, emerging Europe, the Middle East, Latin America and the Caribbean.
During the past year, Exotix has been named Best Boutique Investment Bank in Africa by Global Finance, Best Frontier Markets Investment Banking Team in the UK by Capital Finance International, and Best Broker in Tanzania and Nigeria by EMEA Finance. For more information about Exotix, go to https://www.exotix.com/
For and on behalf of Volt Resources Limited
Chief Executive Officer
Chief Executive Officer
For further information please contact: Trevor Matthews Chief Executive Officer Tel: +61 8 9486 778
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