Month: October 2017

BOARDROOM MEDIA INTERVIEW WITH CEO

BOARDROOM MEDIA INTERVIEW WITH CEO

Tanzanian focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to provide investors with an opportunity to listen to an interview with Chief Executive Officer Trevor Matthews on Boardroom Media.

The interview provides an update on key funding initiatives undertaken by the Company in Q4 2017 and on progress at Volt’s flagship Bunyu Graphite Project in Tanzania.

For and on behalf of Volt Resources Limited

Trevor Matthews
Chief Executive Officer

 


FOR PERSONAL USE ONLY
For further information please contact:

Trevor Matthews – Chief Executive Officer
Tel: +61 8 9486 7788

Released through Sam Burns, Six Degrees Investor Relations, M: 0400 164 067

Posted by Volt Resources in Company News
VOLT TO PURSUE US$30M TANZANIAN BOND ISSUE

VOLT TO PURSUE US$30M TANZANIAN BOND ISSUE

Volt appoints experienced, well-qualified investment banking firm Exotix Capital to raise up to US$30 million via Tanzanian Bond Issue

  • Proposed funding to be deployed early 2018 to complete Stage 1 development of Bunyu Graphite Project targeting production of 20,000tpa of graphite products by late 2018
  • Exotix is a market leader in structured finance packages for natural resource projects in African economies – funds sourced from African institutions, family offices and regional credit funds
  • Analysts expect soaring demand for graphite as a key component of lithium-ion batteries in electric cars, in addition to other key applications such as fire retardant building materials
  • Volt’s Bunyu project is Tanzania’s largest graphite mineral resource

Tanzanian-focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to advise that it has engaged Exotix Capital to undertake a Tanzanian Bond issue to raise up to US$30 million in structured debt to fund the Stage 1 development of the Company’s flagship Bunyu Graphite Project in Tanzania. If successful, the proposed bond financing will ensure that project development funding will be undertaken with minimal equity dilution.

Exotix will act as structuring, financial and placement advisor and will leverage its significant East African networks to complete the proposed Issue, with a focus on the Tanzanian, Kenyan and Ugandan capital markets, respectively.

Volt will continue to consider other funding proposals it is currently negotiating for the Stage 1 development of the Bunyu Project to ensure that momentum moving towards production by year-end 2018 is maintained.

Tanzania and Mozambique are home to Africa’s largest deposits of graphite, a mineral increasingly in demand because of its variety of uses, including as a fire retardant in building materials and for use in batteries for powering electric vehicles. The manufacture of lithium-ion batteries used in electric vehicles requires nine times more graphite than lithium.1 By 2020, analysts estimate the demand for flake graphite will exceed 500,000 tonnes per annum, largely due to an approximate 400% increase in battery graphite feedstock demand from 2016.2

Volt’s Banyu Graphite Project is the largest JORC mineral resource deposit in Tanzania and can produce graphite suitable for both battery production and building material uses.

As part of the proposed bond raising process, Volt will, upon completion, have the bonds listed on the Dar es Salaam Stock Exchange (“DSE”) in Tanzania. The estimated timeframe to complete a DSE listing is 8-12 weeks.

 

Volt’s Chairman, Asimwe Kabunga, commented:

Asimwe KabungaVolt is pleased to be partnering with the team at Exotix over the coming months as we pursue an in-country bond issue in Tanzania to fund the initial Stage 1 development of our Bunyu graphite project.

Exotix brings to the table an extensive network of East African investors and a comprehensive strategy to access these local parties who have a strong appetite for large-scale resource projects such as Bunyu.

We look forward to continuing to provide shareholders with further funding and operational updates in due course.

 

Exotix’s CEO, Duncan Wales, commented:

We are happy to be working on such an important project with Volt to support Tanzania’s growth as a major producer and exporter of natural graphite amid increasing demand for the mineral.

 

 

About Exotix Capital

Since 1999, Exotix has been enabling international investors to access the most dynamic and complex financial markets and economies in the world. Exotix specialises in equity and fixed-income markets, and investment banking, throughout developing economies in Africa, Central, South and Southeast Asia, emerging Europe, the Middle East, Latin America and the Caribbean. During the past year, Exotix has been named Best Boutique Investment Bank in Africa by Global Finance, Best Frontier Markets Investment Banking Team in the UK by Capital Finance International, and Best Broker in Tanzania and Nigeria by EMEA Finance. For more information about Exotix, go to https://www.exotix.com

For and on behalf of Volt Resources Limited

Trevor Matthews
Chief Executive Officer

 


1 http://northerngraphite.com/lithium-ion-batteries
2 http://benchmarkminerals.com/graphite-demand-from-lithium-ion-batteries-to-more-than-treble-in-4-years

FOR PERSONAL USE ONLY
For further information please contact:

Trevor Matthews – Chief Executive Officer
Tel: +61 8 9486 7788

Released through Sam Burns, Six Degrees Investor Relations, M: 0400 164 067

Posted by Volt Resources in Company News
2017 ANNUAL GENERAL MEETING PRESENTATION

2017 ANNUAL GENERAL MEETING PRESENTATION

[Click on any thumbnail image above to enlarge the slides]

Posted by Volt Resources in Company News
BUNYU GRAPHITE TEST WORK AND OFFTAKE PARTNER UPDATE

BUNYU GRAPHITE TEST WORK AND OFFTAKE PARTNER UPDATE

  • Positive initial product feedback received from Chinese offtake partner– final test work results on Bunyu graphite product expected shortly
  • North American offtake customer, Nano Graphene Inc., ramps up graphene production and confirms premium quality of Bunyu graphite product
  • Flake graphite market experiencing strong price growth

Tanzanian focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to provide the following update on its Bunyu graphite offtake partner product test work program and on recent developments made by Volt’s North American customer.

 

Chinese Partner Provides Positive Feedback on Bunyu Graphite

As previously advised, Volt has submitted graphite samples to its potential Chinese offtake partner, China National Building Materials General Machinery (“CNBMGM”), to enable independent testing to be undertaken on the quality and suitability of the Bunyu graphite product.

Volt is pleased to advise that recent feedback received from CNBMGM has been very positive, with test work indicating the Bunyu product meets all requirements for CNBMGM.

Volt entered into a non-binding Cooperation Agreement with CNBMGM in June 2017 which outlined the framework for CNBMGM to become an offtake partner and to provide Volt with project engineering/construction and financing support towards the development of the Bunyu Graphite Project in Tanzania.

CNBMGM is one of the world’s largest building materials producers, consumers and sellers and would provide Volt with significant leverage into the global expandable graphite market should a binding offtake agreement materialise.

The Cooperation Agreement is an important precursor to the signing of a Binding Offtake Agreement with CNBMGM, with the agreement providing for the potential offtake of 10,000-15,000tpa of graphite concentrate from Stage 1 production.

Final results from the CNBMGM test work program are expected to be received in the coming weeks, and Volt will provide updates on additional offtake opportunities and test work programs conducted by other offtake partners in due course.

 

North American Offtake Customer Update

Volt is also pleased to advise that its North American-based customer, Nano Graphene Inc. (“NGI”), has recently achieved a number of key operational and corporate developments. Volt signed a binding offtake agreement with NGI in March 2017 for a minimum of 5,000 tonnes of flake graphite concentrate over 5 years.

NGI recently advised that its Brooklyn-based plant has been commissioned and is now fully operational. Graphene production has commenced and will be steadily ramped up over coming months.

In addition, NGI is in the process of securing supply agreements with a number of recognisable end-users including a major semiconductor producer and an emerging car manufacturer, both of which are planned to utilise Volt’s Bunyu graphite product.

Initial test work undertaken by NGI confirmed that Volt’s Bunyu graphite product is amongst the highest quality graphite flakes NGI had tested to date. As a result, both NGI and Volt are in discussions to broaden their existing partnership to potentially incorporate downstream, value-added refining of Volt’s graphite utilising NGI’s proprietary technology. The Company will provide further updates on these discussions in due course.

 

Graphite Market Update

Volt is also encouraged by the current positive market conditions in the graphite sector, with prices rising as a result of increasing demand for flake graphite in battery anode and building material applications combined with China’s closure of graphite mines arising from environmental issues.

According to industry analyst Benchmark Data, these pressures recently pushed flake graphite prices to their highest point in over two years, with the Benchmark Flake Graphite Index climbing 16% during August continuing a series of monthly price rises since May this year. It is expected that further near-term price increases will continue as limitations on production and demand increases continue.

Furthermore, Volt also notes the increased domestic large flake consumption from China’s expandable graphite sector. As a result, the FOB price of +80 mesh material (94-95% C) from China increased by 19% to an average of $1,000/tonne, with some sales representing a month-on-month increase of up to 30%.

 

Volt’s Chief Executive Officer, Trevor Matthews commented:

Trevor Matthews“Our relationship with CNBMGM continues to progress very well and although still in the early stages we are excited about the prospect of potentially partnering with one of the world’s largest building materials suppliers.

“The fact that Volt’s Bunyu graphite product continues to be validated as premium quality is highly encouraging and we are now working hard to materialise a number of these offtake opportunities in the near-term.

“We are also highly encouraged by the bullish conditions currently being experienced within the global graphite market, in particular, the tightening of supply and increased demand for large flake graphite in China. Graphite is forecast to remain in short supply for the foreseeable future, providing highly conducive conditions to rapidly advance both key operational and funding milestones this year.”

 

For and on behalf of Volt Resources Limited

Trevor Matthews
Chief Executive Officer

 


FOR PERSONAL USE ONLY
For further information please contact:

Trevor Matthews – Chief Executive Officer
Tel: +61 8 9486 7788

Released through Sam Burns, Six Degrees Investor Relations, M: 0400 164 067

Posted by Volt Resources in Company News