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VOLT RESOURCES LIMITED

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ENVIRONMENTAL APPROVAL RECEIVED FOR BUNYU GRAPHITE PROJECT

ASX Announcement 4 September 2018

Tanzanian focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to report the completion of another key milestone in the development of the Bunyu Graphite Project, with the Company’s wholly-owned subsidiary Volt Graphite Tanzania Ltd, having received the Environmental Impact Assessment (EIA) Certificate from the National Environment Management Council of Tanzania (NEMC).

Importantly, the EIA certificate signed by the Honourable Minister of State in Vice President's Office for Union Affairs and Environment Hon. January Makamba, represents the final pre-requisite for the granting of Volt’s Mining Licence (ML) and one of the final remaining major milestones in terms of Government permitting for the Bunyu Graphite Project.

The Bunyu Mining Licence Applications (MLA’s) were submitted to the Minister for Minerals in February 2018 (see ASX release dated 8 February 2018). Recently the Tanzanian Minerals Commission issued revised formats for the Integrity Pledge and Local Content Plan to be submitted with the Company’s MLA’s. These have been completed and lodged with the Commission. Once the EIA certificate is lodged with the Commission the Company expects the two ML’s to be granted soon thereafter.

The Bunyu MLA’s and EIA certificate, along with the previously advised approval of the resettlement compensation under the Resettlement Action Plan (ASX announcement dated 30 April 2018), covers the area required for the Stage 1 development and Stage 2 Expansion Project.

Volt’s Environmental and Social Impact Study submission was prepared in accordance with the requirements of relevant Tanzanian legislation, including the Environmental Management Act 2004; the Environmental Impact Assessment and Audit Regulations 2005 as well as the Mineral Sector Environmental Impact Assessment Guidelines 2014. The requirements and procedures required to obtain mineral rights are stipulated in the Mining Act 2010 with 2017 amendments and the associated Mining Regulations 2018.

Volt’s Chairman, Asimwe Kabunga, commented, “This is a significant milestone in the development of our Bunyu Project, as it transitions the Company a step closer to receiving the all-important Bunyu Mining Licences.

“Volt would like to take this opportunity to thank the local communities and government parties within the Lindi and Mtwara regions, along with the National Environmental Management Council, our Tanzanian specialist consultants Tansheq Limited and their sub-consultants, and our staff for their support, commitment, tenacity and diligence throughout this important process.”

“Looking ahead we remain firmly focused on advancing the Bunyu Project towards Stage 1 production, and we look forward to providing our shareholders with further updates on funding and development progress in the near-term.”

Click here to view the full announcement

QUARTERLY ACTIVITIES REPORT TO 30 JUNE 2018

ASX Announcement 1 August 2018

HIGHLIGHTS 

  • Volt completes Stage 1 Feasibility Study post-quarter end for the flagship Bunyu Graphite Project in Tanzania. 
    • Stage 1 based on a mining and processing plant annual throughput rate of 400,000 tonnes of ore to produce on average 23,700tpa of graphite products positioning Volt as a meaningful participant in the global flake graphite market; 
    • Stage 1 financial analysis showed favourable NPV and IRR over a payback period of 4.4 years; 
    • Pre-tax NPV (10%) of US$18.6M; 
    • Pre-tax IRR of 21.0%; 
    • EBITDA of US$93.6M over 7 year Stage 1 project period – average annual EBITDA of $US13.1M; 
    • Stage 1 FS indicates average FOB operating cost of US$664 per tonne and start-up capital cost estimate of US$31.8M; 
    • Key objective of Stage 1 development is to establish infrastructure and market position in support of the development of the significantly larger Stage 2 expansion project.
  • Draft prospectus for the US$40 million Tanzanian Note Issue under review with the Tanzanian Capital Markets and Securities Authority (CMSA) and the Dar es Salaam Stock Exchange (DSE) 
  • $2,000,000 placement completed, funds to be deployed towards repaying the Convertible Loan Facility and working capital requirements at Bunyu Project 
  • Additional offtake agreements continue to be advanced following positive meetings with potential Chinese partners 
  • Resettlement Action Plan (RAP) compensation process completed 
  • Environmental and Social Impact Statement (ESIS) for Bunyu Graphite Project under review – key step towards Stage 1 development and production

Volt Resources Limited (ASX: VRC) (“Volt” or, the “Company”) is pleased to provide shareholders with its quarterly activities report for the period ended 30 June 2018.

Management Commentary 

Volt Resources CEO Trevor Matthews commented: 

“The June quarter represented an important period of consolidation for the Company, with the Stage 1 Feasibility Study now complete, which represents an important step forward in Volt’s strategy to become one of leading global producers of natural coarse flake graphite.

“From a funding perspective, we are continuing to make good progress in regards to our US$40 million Tananian Note issue, which will provide the capital to fund the Stage 1 development of Bunyu.

“With a number of key approvals and funding developments on the horizon, we expect the September quarter to be another highly productive period for the business as we move towards first production from Bunyu.”

June Quarter Activities Review 

Stage 1 Feasibility Study

Post quarter end, the Company completed the Feasibility Study (“FS”) into the Stage 1 development of the flagship Bunyu Graphite Project located in Tanzania (Refer ASX announcement dated 30 July 2018, released 31 July 2018).

The Stage 1 development is focussed on the development of a nominal 20,000 to 24,000tpa graphite mine and processing facility in Tanzania with exports of graphite products planned into the USA, China and other markets.

The development incorporates a significant amount of infrastructure, utilities and mine development work that benefits the Stage 2 expansion including the site access road, plant laydown area, tailings storage facility, waste dumps, stockpile areas, open pit development, mining operations, accommodation village and water supply.

The proposed Stage 2 development is an expansion of Stage 1 production based on the market demand for Bunyu’s graphite products and leveraging the large scale graphite mineral resource and Bunyu’s close proximity to critical infrastructure. The Stage 2 expansion is targeted to meet expected significant increases in demand for coarse flake graphite in the expandable graphite market and fine flake size products for battery anode material and other existing and evolving industrial uses for micro carbon products.

During the Stage 1 FS the Company, working with its Tanzanian subsidiary, Volt Graphite Tanzania Ltd (VGT) also conducted the following activities:

  • Completed and lodged the Environmental and Social Impact Study (ESIS). The ESIS has been reviewed by the NEMC and Technical Advisory Committee which has involved a site visit and technical review meetings and is now in the final stage for the Ministerfor Environment approval. It is important to note the environmental approval incorporates the area to be developed under Stage 1 and the Stage 2 expansion.
  • Lodged two Mining Licence (“ML”) applications covering the 18km2 footprint for Stage 1 and the Stage 2 expansion. The recent appointment of the Mining Commission has resulted in a large number of licence applications being approved. Once the environmental approval is obtained, the Company expects the mining licences to be approved soon thereafter.
  • Completed the Resettlement Action Plan and received all approvals for the compensation arrangements with approximately 1,000 people either farming or living within the mining licences area.

Click here to view the full announcement

Positive Stage 1 Feasibility Study For Bunyu Graphite Project, Tanzania

ASX Announcement 31 July 2018

Stage 1 Feasibility Study Highlights: 

  • Key objective of Stage 1 development is to establish infrastructure and market position in support of the development of the significantly larger Stage 2 expansion project 
  • Stage 1 based on a mining and processing plant annual throughput rate of 400,000 tonnes of ore to produce on average 23,700tpa of graphite products positioning Volt as a meaningful participant in the global flake graphite market 
  • Stage 1 financial analysis delivers favourable NPV and IRR over a payback period of 4.4 years 
    • Pre-tax NPV (10%) of US$18.6M 
    • Pre-tax IRR 21.0%
  • Total EBITDA of US$93.6M over 7 year Stage 1 project period – average annual EBITDA of US$13.1M
  • Development schedule of 12 months to first ore production - project development approvals and Stage 1 funding initiatives are well advanced 
  • Stage 1 FS indicates average FOB operating cost of US$664 per tonne and start-up capital cost estimate of US$31.8M 
  • Stage 1 development incorporates a significant amount of infrastructure, utilities and mine development work that benefits the Stage 2 expansion 
  • DFS for Stage 2 is planned to proceed concurrent with Stage 1 project development 
  • Volt currently completing the final binding offtake agreements for substantially all of Stage 1 annual production

Tanzanian focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to report the completion of the Feasibility Study (“FS”) into the Stage 1 development of the Company’s flagship Bunyu Graphite Project located in Tanzania.

Board and Management Commentary: 

Volt’s Chief Executive Officer, Trevor Matthews, commented: “The Stage 1 Feasibility Study is another important step forward in Volt’s plan to become one of the top three global producers of natural flake graphite.

“The Company has been implementing a two stage development strategy following the completion of a large scale Pre-Feasibility Study (“PFS”) in December 2016. Concurrent with the PFS completion, Volt announced the largest graphite JORC Mineral Resource in Tanzania and one of the largest in the world.

“Following a detailed strategic review of product markets and financial markets, in May 2017 Volt announced a clear pathway to transition the Company into a globally significant producer of material quantities of high quality graphite products. It was decided that this accelerated pathway would be achieved via the development of the Bunyu Project over two stages.

Stage 1 is focussed on the development of a nominal 20,000 to 25,000tpa graphite mine and processing facility in Tanzania with planned exports of graphite products into the USA, China and other markets. The proposed Stage 2 development is an expansion of Stage 1 production based on the market demand for Bunyu’s graphite products and leveraging the large scale graphite mineral resource and Bunyu’s close proximity to critical infrastructure. The Stage 2 expansion is targeted to meet expected significant increases in demand for coarse flake graphite in the expandable graphite market and fine flake size products for battery anode material and other existing and evolving industrial uses for micro carbon products.”

Volt’s Non-Executive Chairman, Asimwe Kabunga, commented: “This is an exciting period for the Company and its shareholders as we work on this important near-term transition from developer to producer. The delivery of a robust Stage 1 Feasibility Study is a key step towards unlocking the considerable underlying value of our world-class Bunyu Project. Once funding is obtained, the Company will proceed with the Front End Engineering and Design for Stage 1 and place orders for long lead time components. Concurrent with the Stage 1 development, Volt also plans to commence work on the definitive feasibility study for the Stage 2 expansion.”

Development Update: 

During the Stage 1 Feasibility Study the Company working with its Tanzanian subsidiary, Volt Graphite Tanzania Ltd (VGT), has also conducted the following activities:

  • Completed and lodged the Environmental and Social Impact Study (ESIS). The ESIS has been reviewed by the NEMC and Technical Advisory Committee which has involved a site visit and technical review meetings and is now in the final stage prior to forwarding to the Minister for Environment for approval. It is important to note the environmental approval incorporates the area to be developed under Stage 1 and the Stage 2 expansion. 
  • Lodged two Mining Licence (“ML”) applications covering the 18km2 footprint for Stage 1 and the Stage 2 expansion. The recent appointment of the Mining Commission has resulted in a large number of licence applications being approved. Once the environmental approval is obtained, the Company expects the mining licences to be approved soon thereafter.
  • Completed the Resettlement Action Plan and received all approvals for the compensation arrangements with approximately 1,100 people either farming and/or living within the mining licences area. This is an important milestone as without the compensation arrangements being approved, the Bunyu Project would not be able to proceed to development. As explained previously the footprint that the compensation area covers incorporates the Stage 1 and Stage 2 expansion project. 
  • Held meetings with Volt’s graphite offtake partners and now completing the final binding offtake agreements for substantially all of Stage 1 annual production. These offtake agreements are in Volt Resources Limited ACN 106 353 253 Level 5, London House 216 St. Georges Terrace Perth WA 6000 Phone: +61 (8) 9486 7788 3 addition to the existing binding offtake agreement with US based graphene company, Nano Graphene Incorporated. 
  • Progressed with the development funding of Stage 1 through the planned issue of US$40m of Tanzanian listed Notes (Bonds). With the assistance of the Company’s advisors Exotix Capital, Orbit (sponsoring broker), Clyde and Co (legal) and Ernst & Young (Reporting Accountant) the Company has prepared and lodged a prospectus with the Tanzanian regulators, the Dar es Salaam Stock Exchange and the Capital Markets and Securities Authority for their review and approval. Comments on the prospectus have now been received from both regulators and the Company is engaged in finalising the changes to the prospectus requested and some additional matters discussed with the CMSA. Once the content of the prospectus and other matters have been agreed, the Company will proceed to issue the prospectus to qualified institutional buyers and sophisticated investors in East Africa. The prospectus remains open for 10 business days following which the Company will proceed to a development decision on the Bunyu Stage 1 project.

The Stage 1 development incorporates a significant amount of infrastructure, utilities and mine development work that benefits the Stage 2 expansion including the site access road, plant laydown area, tailings storage facility, waste dumps, stockpile areas, open pit development and mining, accommodation village, water supply, etc.

Click here to view the full announcement

Placement raises A$2 million

ASX Announcement 14 June 2018 

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.

Click here to view the full announcement 


QUARTERLY ACTIVITIES REPORT TO 31 MARCH 2018 

HIGHLIGHTS 

  • 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.

CEO Commentary 

“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.”

Click here to view the full announcement 

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