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.
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.
Funds raised to complete Stage 1 Feasibility Study and associated activities
Volt Resources Limited (Volt or the Company) (ASX: VRC) is pleased to offer its existing eligible shareholders the opportunity to participate in Volt’s Share Purchase Plan (Plan) to raise funds to complete the Feasibility Study for the Stage 1 Namangale Graphite Project (Project) in Tanzania and for general working capital.
Under the Plan, eligible shareholders may apply to purchase up to $15,000 worth of new fully paid ordinary shares in the Company (New Shares) without paying brokerage or other transaction costs. Participation in the Plan is open to all holders of Volt shares as at 5.00pm (WST) on Monday 4 September 2017 (Record Date) with a registered address in Australia or New Zealand (Eligible Shareholder).
The issue price will be determined at the issue date of the New Shares under the Plan based on a 20% discount to the volume weighted average price of Volt shares traded on the ASX during the 5 days immediately prior to the issue date of the New Shares under the Plan.
Under the Plan, Eligible Shareholders will be able to purchase parcels of New Shares valued at $1,000, $2500, $5000, $7,500, $10,000 or $15,000. The Company seeks to raise $1,500,000 under the Plan, however, the Directors reserve the right to expand the size of the Plan (up to the maximum permitted by the ASX Listing Rules) or scale back applications in their absolute discretion.
The Directors of the Company intend to participate in the Plan. In addition, Volt’s Non-Executive Chairman Asimwe Kabunga and Non-executive Director Matt Bull have both agreed to sub-underwrite $300,000 each of the Plan in the event of a shortfall. Their sub-underwriting is subject to shareholder approval at a general meeting to be convened prior to the issue of the New Shares.
The Plan is to be underwritten by Patersons Securities Limited (Patersons) to $1,500,000.
The Company has agreed to provide Patersons the right to facilitate a placement of New Shares in the Company at the same issue price as under the Plan. Eligible Shareholders will be sent an offer letter and Plan Terms and Conditions including the timetable in the week commencing 11 September 2017.
Volt plans for the new funds raised to enable the Company to:
Complete the feasibility study for the Stage 1 development of the Project in early 2018 including further drilling and geological work, metallurgical testwork to finalise and optimise process flow sheet design;
Complete funding discussions, obtain project development approvals, advance the offtake and cooperation agreements to 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.
Volt CEO, Trevor Matthews commented:
“It is important that the Company continues to advance the Stage 1 development of the Namangale project which provides the platform for the Stage 2 expansion to follow. The support of Volt’s Board members for the capital raising should be seen as a strong endorsement of the Company’s plans and the potential of the Namangale project.
“The Plan gives all Volt shareholders an opportunity to participate in this capital raising and contribute to the Company and the Namangale project development.” http://voltresources.com/volt-launch-capital-raising/#more-2360
Corporate Update pdf
This is a paid advertisement. HotCopper does not endorse, approve or take responsibility for the statements made.