Bunyu Graphite Project, Tanzania
8 February 2018
- Mining Licence Applications (MLA’s) cover both Stages 1 and 2 of its Bunyu Graphite Project in Tanzania
- Significant milestone and represents the final key approval required for proposed Stage 1 development of flagship Bunyu Project
- Latest development follows the submission of the Environmental and Social Impact Statement (ESIS) in January
- Bunyu Project has the largest JORC Mineral Resource in Tanzania measuring 461Mt at 4.9% Total Graphite Carbon (TGC)
In addition, Volt will update shareholders on the progress of the Exotix Capital US$40m bond issue and the finalisation of the Stage 1 Bunyu Feasibility Study in the near future.
Volt’s Chief Executive Officer, Trevor Matthews commented:
“We are continuing to make significant strides towards the planned Stage 1 Development of our Bunyu Graphite Project this year, with the submission of the Mining Licence Applications another key component of this strategy.
“Coupled with the recent submission of the ESIS and the partnering with Exotix on the project funding for Bunyu, our focus remains squarely on our shareholder value proposition with the nearterm development of what will be a globally significant graphite asset.
for Bunyu Graphite Project
23 January 2018
- Environmental and Social Impact Assessment study covers the area for Stage 1 and Stage 2 expansion projects at the flagship Bunyu Graphite project in Tanzania
- Key step forward for stage 1 production at Bunyu Graphite Project
Aggressively Progress the Bunyu Graphite Project
9 January 2018
- Heavily supported exercise of listed options (approximately 90% exercised before underwriting) supports Volt’s development strategy and production pathway for the Bunyu Graphite Project
- Volt’s robust cash position provides the financial capacity to aggressively progress the Stage 1 Development of flagship Bunyu Graphite Project
- Volt proceeding with US$40m Tanzanian bond issue financing with Exotix Capital for Stage 1 Development with planned completion Q1 2018
- Prices for flake graphite remained strong in the December 2017 quarter with increases across all product sizes driven by increasing demand from lithium ion battery manufacturers and flame retardant building materials
Volt to proceed with US$40 million Tanzanian Bond issue to fund
Stage 1 development of Bunyu Graphite Project
14 December 2017
- Volt to proceed with Bond Issue following successful roadshows completed in Tanzania, Uganda and Kenya
- Proposed funding to complete Stage 1 development of Bunyu Graphite Project targeting production of 20,000tpa of graphite products commencing late 2018/early 2019
- Debt transaction sized at US$40 million to cover Stage 1 development at the Bunyu Project and ancillary costs
- Volt’s Bunyu Project is the largest JORC Mineral Resource deposit in Tanzania with 461Mt @ 4.9% TGC, with 22.6Mt of contained graphite1
Tanzanian-focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to advise that it will proceed with the issue of US$40 million in structured debt funding.
As previously advised (see ASX Announcement dated 25 October 2017), Volt has engaged Exotix Capital to undertake a Tanzanian Bond issue to raise the required funding for the development of Stage 1 of the Bunyu project.
Following recent meetings with targeted investment groups in Tanzania, Uganda and Kenya, Exotix has recommended Volt proceed with a formal bond prospectus process and listing of the bonds on the Dar es Salaam Stock Exchange (“DSE”) in Tanzania. Volt and Exotix have sized the debt transaction at US$40 million on the key terms set out below which will allow net project development and working capital funding of ~US$31 million after taking into account a Debt Service Reserve Account (DSRA) and costs of the issue. The facility interest and bond maturity payments can be serviced by projected project cashflows.
Importantly, the US$40m debt sizing allows meaningful participation from Tanzanian and Ugandan Pension Funds combined with other investment groups seeking fixed income investments.
Following the preparation and issue of a prospectus by Volt’s Tanzanian subsidiary, Volt Graphite Tanzania Ltd, to accept investment subscriptions, the bonds be will listed on the Dar es Salaam Stock Exchange (“DSE”) in Tanzania. The estimated timeframe to complete the bond prospectus and DSE listing is 8-12 weeks.
This funding pathway provides for local investment in the largest graphite project in Tanzania and one of the largest in the world. With local job creation and skills acquisition, local business opportunities and significant export revenue for Tanzania, the Bunyu Graphite Project provides Tanzania with the opportunity to become a significant part of the global new energy sector.
Volt’s Bunyu Graphite Project can produce graphite suitable for battery anode production, flame retardant building material uses, the developing graphene industry and traditional markets including refractories.
Volt’s CEO, Trevor Matthews, commented:
“We are buoyed by the level of support received from the Exotix bond roadshow.
“The appetite for investing in local resource projects in this market is evident by the positive response received to date and the increased sizing of the bond issue provides us with added financial flexibility as we target the successful Stage 1 development of our Bunyu Graphite Project over the next 12 months.
“We look forward to scaling up our development activities at Bunyu into the new year, and we will provide shareholders with further funding and operational updates in due course.”