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.
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