Placement raises A$2 million
Tanzanian focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to advise that it has received binding commitments for a share placement to raise A$2 million (before costs).
Patersons Securities (“Patersons”) acted as the Lead Manager to the Placement. There was strong demand for the Placement with the majority of the new fully paid shares being subscribed for by institutional investors.
Funds raised will be used to repay the Convertible Loan Facility (see ASX Announcement dated 7 July 2017), and for working capital requirements as Volt progresses its project approvals and financing programs in Tanzania.
Under the Placement, Volt will issue 86,956,523 new fully paid ordinary shares to sophisticated and professional investors at A$0.023 per share. Patersons will receive 8,000,000 options with an exercise price of A$0.06 expiring on 30 April 2019 (the same expiry date as the current unlisted options on issue) as part remuneration for its role as Lead Manager. Settlement and issue of the new fully paid ordinary shares subscribed for under the Placement and the issue of the Patersons’ options is expected to occur on 20 June 2018. The Placement and the Patersons’ options will be issued under the Company’s available ASX Listing Rule 7.1 placement capacity and do not require shareholder approval.
Mr Asimwe Kabunga, Volt’s Chairman commented, “With the Company now on the cusp of delivering a number of company making milestones including obtaining key project development approvals and securing development funding, the Board believes it was timely to strengthen its near-term cash position.
“Further, we are pleased with the level of support for the capital raising by institutions and sophisticated investors and the Company looks forward to providing further updates on key corporate and operational developments in the near-term.”
Bunyu Graphite Project Update
Importantly, with the Feasibility Study nearing completion at the Company’s flagship Bunyu Project in Tanzania, Volt’s monthly expenditure is significantly reducing.
As previously advised (see CEO Update dated 6 June 2018), Volt is awaiting environmental approvals followed by the mining licence approvals that will incorporate the footprint for Stages 1 and 2 of the Bunyu Project.
The draft prospectus for the US$40 million Note Issue that has been lodged with the Tanzanian Capital Markets and Securities Authority (“CMSA”) and the Dar es Salaam Stock Exchange (“DSE”) is currently under review with comments received from the DSE which have been incorporated into the prospectus. The Company has just received comments from the CMSA is now working on our response. Once the prospectus content has been agreed with the regulators, the Company will soon thereafter proceed with the issue of the prospectus to sophisticated investors in the East African financial markets to raise the Bunyu project development funds.
- Volt further strengthens financial position with $1.0 million proceeds from the exercise of remaining listed options received during quarter with $4.7 million received in total.
- Draft prospectus for the US$40 million Tanzanian Note lodged with the Tanzanian Capital Markets and Securities Authority (CMSA) and the Dar es Salaam Stock Exchange (DSE).
- Mining Licence Applications lodged with the Ministry of Energy and Minerals of Tanzania - representing a key approval required for the Stage 1 development of Bunyu
- Environmental and Social Impact Statement for Bunyu Graphite Project lodged – key step towards Stage 1 development and production
Volt Resources Limited (ASX: VRC) (“Volt” or, the “Company”) is pleased to provide shareholders with an update on activities for the period ended 31 March 2018.
“Volt remains focused on completing the Stage 1 development of the Bunyu Graphite Project within the next 12 to 15 months, and a number of important operative foundations were completed over the course of the March quarter.
“The lodgement of documents such as the Environmental and Social Impact Statement, mining licence applications and the completion of the Resettlement Action Plan with associated valuation report lodged for approval with the Chief Valuer represent the progress of a number of critical components of the Company’s strategy.
“Furthermore, the regulatory review of the draft prospectus for the US$40 million Tanzanian Note issue is now well underway.
“With these developments anticipated to be finalised in the June quarter, Volt is entering an exciting phase and remains on track to develop its world-class graphite business.”
- Meetings held this month with key existing and potential new offtake partners in China - strong demand for flake graphite, particularly coarse flake for expansion market
- Existing offtake partners advise they are prepared to sign binding offtake agreements for Bunyu Graphite
Tanzanian-focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to provide the following update on the Company graphite offtake agreement strategy.
Members of Volt’s management team recently visited China to advance discussions on binding offtake agreements in line with the Company’s progress in development funding, Stage 1 feasibility study, development approvals and construction related contracts for the Company’s flagship Bunyu Graphite Project in Tanzania.
Volt is pleased to advise that a number of meetings have been held with CNBM General Technology (formerly known as CNBM General Machinery), Qingdao Guangxing Electronics Materials (GEM), Qingdao Tianshengda Group and two new groups, Haida Graphite and Qingdao Baixing Graphite to progress offtake agreements or commence exchange of project information and product samples for longer term supply arrangement discussions.
Feedback received to date has indicated strong demand for coarse flake material above 100 mesh (150 micron) in size for use in the expandable graphite market, which strongly supports Volt’s processing strategy to maximise the production of coarse flake graphite.
The parties are now progressing with exchanging draft binding offtake agreements in relation to Stage1 offtake. Further updates on these discussions will be provided to shareholders in due course.
Bunyu Graphite Project On Track
- Draft prospectus for US$40 million Note Issue now under review by the Tanzanian Capital Markets and Securities Authority and the Dar es Salaam Stock Exchange
- Environmental approvals process progressing well – site verification visit and technical review completed
- Resettlement Action Plan developed and compensation approvals nearing completion
Tanzanian-focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to provide a progress update on the Company’s flagship Bunyu Graphite Project in Tanzania.
US$40 million Tanzanian Note Prospectus Progress
As advised on 27 March, the Company lodged the draft prospectus for the US$40 million Note Issue with the Tanzanian Capital Markets and Securities Authority (“CSMA”) and the Dar es Salaam Stock Exchange (“DES”). Both regulators are currently conducting their review process.
There is no prescribed timeframe for the completion of the review process. However, based on previous note issues the initial review generally takes 3 weeks to receive feedback from the regulators. Therefore, Volt expects to receive feedback from the regulators later this month.
Following this, the Company and its advisors will make any requested changes and re-submit the prospectus to the regulators for final approval, following which the prospectus will be distributed to investors in East Africa to commence the fund raising process.
Bunyu Project Update
Volt can advise that the environmental approvals continue to progress in line with expectations, with the National Environment Management Council (“NEMC”) conducting a site verification visit in February, which was followed by a technical advisory committee meeting in Dar es Salaam in early March.
As usual with environmental assessment processes, further information for inclusion in the Environmental Social Impact Statement (“ESIS”) has been requested arising from these review processes. The Company is currently preparing the additional information and will submit the amended ESIS to the NEMC within the next week. Subject to meeting the requirements of the NEMC, the amended document and NEMC recommendations will be sent to the Department of Environment whereby the Minister will provide their decision within 30 days.
Prospectus lodged for US$40 million Tanzanian Note Issue
Tanzanian-focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to advise that the draft prospectus for the US$40 million Note Issue1 will be lodged with the Tanzanian Capital Markets and Securities Authority (CMSA) and the Dar es Salaam Stock Exchange (DES) today.
Following lodgement the prospectus will be reviewed by the CMSA and the DSE.
Once approved for distribution, the prospectus will be printed and forwarded to potential investors in Tanzania, Uganda and Kenya.
Volt is undertaking the Note Issue in partnership with highly experienced, specialist investment bank Exotix Capital (“Exotix”). As previously advised (see ASX announcement dated 26 February 2018), Orbit Securities (“Orbit”) has been appointed as Co-Lead Advisor and Placing Broker for the Tanzanian Note Issue alongside Exotix.
Funds raised from the completion of the Note Issue will be deployed towards the Stage 1 development of the Bunyu Graphite Project, targeting the production of ca. 20,000tpa of highquality graphite products.
Further updated on the funding process will be provided to shareholders in due course.