Month: November 2017

TESTWORK CONFIRMS PREMIUM GRAPHITE PRODUCT AT BUNYU NORTH

TESTWORK CONFIRMS PREMIUM GRAPHITE PRODUCT AT BUNYU NORTH

Highlights

  • Excellent results returned from Bunyu North product samples, including C content 99.6% and O content 0.08% with no impurities found – a highly ordered, defect-free material
  • Testwork conducted by US based off-take partner Nano Graphene (NGI) – renowned graphene expert confirms the quality across the entire Bunyu Project area
  • Bunyu North is the focus for Stage 1 and Stage 2 development
  • Bunyu graphite continues to be validated as a premium quality product across a range of markets by well-credentialed offtake partners NGI and CNBMGM

Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to advise that recent testwork undertaken on graphite product samples from the Company’s flagship Bunyu Graphite Project has further confirmed the premium quality of the products derived from the Project’s graphite.

Importantly, the purified graphite and graphene produced from Bunyu product samples by Volt’s North American offtake customer NanoGraphene Inc. (“NGI”) is of excellent quality and high purity.

NGI is using very clean and environmentally friendly processing technology for their graphene production. Of note the purified graphite and graphene was produced using physical processes with the addition of water only and without the use of damaging acids. As previously advised (ASX Announcement 5 October 2017), initial test work undertaken by NGI confirmed that the Bunyu product is among the highest quality graphite flakes NGI had tested to date and is eminently suited to graphene production.

Graphene is a one-atom-thick sheet of carbon atoms arranged in a honeycomb-like pattern. Graphene is considered to be the world’s thinnest, strongest and most conductive material – to both electricity and heat. Top quality graphene has numerous applications across a number of industrial fields including electricity, conductivity, energy generation, batteries and sensors.

Testwork completed by NGI had previously confirmed the high quality nature of product samples from Volt’s Bunyu South deposit – with the most recent testwork conducted using product samples from the Bunyu North deposit, which will be the focus of the planned Stage 1 near-term development.

NGI Head of Research and Development Dr Jay Mondal, who is a highly-credentialed expert in the graphene sector, confirmed after elemental analysis was conducted on the samples using ultra high vacuum XRF, the samples returned C content 99.6% and O content 0.08%, with no impurity found. In addition, the properties exhibited by Bunyu graphite were excellent (see Figure 1 below).

 

Volt Bunyu Graphite Testwork by NGI

 

The results confirmed the product quality at Bunyu and follows the positive feedback received from Chinese partner China National Building Materials General Machinery (“CNBMGM”) in October (ASX Announcement 5 October 2017).

It should be noted that NGI is in the process of securing supply agreements with a number of recogniseable end-users including a major semi-conductor producer and an emerging car manufacturer, both of which will utilise Volt’s Bunyu graphite product.

 

Volt’s Chief Executive Officer, Trevor Matthews commented:

“We are pleased to have received these results, which is further validation of the premium quality of our Bunyu graphite products and this positive feedback will strengthen ties with our existing offtake partners across the spectrum of graphite applications, including the high growth segments of expandable and spherical graphite, as well as graphene.

“Importantly, the initial testwork conducted by NGI earlier this year established the quality of the Bunyu South project area, but now that quality has also been replicated at Bunyu North which is a very significant step forward for the proposed Stage 1 development of the project in the near-term.

“Volt is also actively engaged in considering a number of funding options for the Stage 1 development of Bunyu and will provide shareholders with further updates on progress in due course.”

 

About NanoGraphene Inc.

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

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 commencing Q1 2018.

 

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 RAISE $900,000 THROUGH TOP-UP PLACEMENT

VOLT TO RAISE $900,000 THROUGH TOP-UP PLACEMENT

Highlights

  • Recently completed Share Purchase Plan raised $2.338 million – additional funds from top-up placement take total funds raised to over $3.2 million
  • Top-up placement facilitated through new shares issued at 2.1 cents – same price as SPP
  • Funds will be deployed to complete the Stage 1 feasibility study and accelerate exploration and drilling program at the flagship Bunyu Graphite Project in Tanzania

Graphite exploration and development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to advise that following the recently completed Share Purchase Plan (“SPP”) (see ASX announcement dated 1 November 2017), which raised $2.338 million, the Company has received firm commitments to raise an additional $900,000 via a Top‐up placement (“the placement”) from sophisticated and professional investors.

Funds raised from the recently completed Share Purchase Plan and subsequent placement will be used to complete the feasibility study and associated activities for the Stage 1 Bunyu graphite project development and assist in accelerating exploration and drilling at the flagship Bunyu Graphite Project.

Patersons Securities Limited underwrote the SPP and received no shortfall due to strong take up by Volt shareholders. The Company is pleased to advise Patersons have agreed to facilitate the placement through the issue of new shares at an issue price of 2.1 cents per share, the same price as the SPP. The placement shares are planned to be issued in the week beginning Monday, 6 November. This placement of shares is being undertaken using the Company’s existing issuance capacity under ASX Listing Rule 7.1.

Volt’s Chief Executive Officer, Trevor Matthews, commented,

“We are very pleased with the strong support received from both existing shareholders and new investors during the SPP and subsequent placement, as it further supports Volt’s strategy to develop our world-class graphite deposit in Tanzania.

“Volt now has the requisite funding flexibility to scale-up its exploration and drilling activities at the Bunyu Graphite Project, as we target the completion of a feasibility study on the Stage 1 Development of Bunyu, which is expected to be delivered early next year.

“We are also actively progressing the recently announced Stage 1 funding process with Exotix Capital for the development of Bunyu and look forward to providing further updates on this process and other funding discussions in due course.”

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
SHARE PURCHASE PLAN CLOSED HEAVILY OVERSUBSCRIBED

SHARE PURCHASE PLAN CLOSED HEAVILY OVERSUBSCRIBED

HIGHLIGHTS

  • $2,338,975 raised via oversubscribed Share Purchase Plan
  • Funds raised will be used to fund the completion of the Feasibility Study
    for the Stage 1 development of the Bunyu Graphite Project

 

Share Purchase Plan

Volt Resources Limited (the Company) (ASX: VRC) is pleased to advise that the Company’s Share Purchase Plan (SPP) announced to ASX on 5 September 2017 closed oversubscribed on 25 October 2017.

The SPP was strongly supported by Shareholders and was heavily oversubscribed with the Company receiving applications totalling $2,338,975. In light of this strong demand from Shareholders, the Company’s Board of Directors has elected to increase the original target which was set at $1,500,000 and accept all valid applications received to allow all eligible Shareholders who submitted valid applications to fully participate in the Offer.

The Company will now proceed to issue shares to the valid applicants of the SPP at an issue price of 2.1 cents per share, being a 20% discount to the 5-day Volume Weighted Average Price (VWAP) of shares traded on the ASX prior to the date of issue.

Use of Funds

The funds raised will be deployed towards the following key objectives:

  • Complete the feasibility study for the Stage 1 Bunyu graphite project development;
  • Continue development funding negotiations, obtain project development approvals, advance offtake and cooperation agreements into binding agreements, enter into engineering and construction agreements and other material contracts for the Stage 1 development;
  • Support in-country costs associated with the Project; and
  • Fund general corporate and other expenses.

Issue of Shares

The Company expects the shares under the SPP to be issued on 1 November 2017 with any refund and allotment advice to be despatched to Shareholders on 1 November 2017.

Patersons Securities Limited (Patersons) underwrote the SPP and received no shortfall. Patersons may now elect to facilitate a placement of new shares at an issue price of 2.1 cents per share, the same price as the SPP.

The Board of Directors wish to thank all Shareholders for their ongoing support as the Company continues to advance the development of the Bunyu graphite project.

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
QUARTERLY ACTIVITIES AND CASHFLOW REPORTS (NOV 2017)

QUARTERLY ACTIVITIES AND CASHFLOW REPORTS (NOV 2017)

HIGHLIGHTS

  • Volt appoints experienced, well-qualified investment banking firm Exotix Capital to raise up to US$30 million via Tanzanian Bond Issue as funding for Stage 1 development
  • Offtake agreements progressing well, including:
    • Positive initial feedback received from potential Chinese offtake customer
    • North American offtake partner Nano Graphene Inc. ramps up graphene production and confirms premium quality of Bunyu graphite product
  • Capital raising initiative launched via a Share Purchase Plan.
    • Plan to be underwritten by Patersons Securities Limited and further sub-underwriting from two Volt Directors
  • Project name changed to Bunyu (previously Namangale)

 

Volt Resources Limited (ASX: VRC) (“Volt” or, the “Company”) is pleased to provide shareholders with an update on activities for the three-month period ended 30 September 2017.

Highlights for the quarter included the progression of key offtake agreements with positive results received from independent test work programs, advancement of Bunyu project development approvals and commencement of a Share Purchase Plan underwritten by Patersons Securities Limited and Directors of the Company.

COOPERATION AND OFFTAKE AGREEMENTS

During the quarter, Volt continued to advance discussions with China National Building Materials General Machinery (“CNBMGM”) and Guangxing Electrical Materials (“GEM”) (see ASX announcement “Volt Operational Update” dated 26 September 2017).

Product samples were sent to both CNBMGM and GEM to enable independent testing on the Bunyu Graphite product. Additional samples were also arranged for China-based AOYU Graphite. Assuming the product test work is successful, then offtake agreements totalling 15,000 – 20,000 tonnes per annum could be confirmed during Q4 2017.

Subsequent to the reporting period, positive initial product feedback was received from CNBMGM (see ASX announcement “Bunyu Graphite Test Work and Offtake Partner Update” dated 5 October 2017). 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.

LEGISLATION CHANGES, KEY APPROVALS AND MINING LICENCE APPLICATION

The report for the ESIA (Environmental and Social Impact Assessment) and the RAP (Resettlement Action Plan), as noted in the previous quarterly report, was finalised. Volt is currently working in collaboration with the relevant government authorities, to ensure that the submission is compliant and expedites the grant of the mining license. Submission to the NEMC (National Environmental Management Council) is yet to be completed but is planned early in Q4 2017.

Three Bills passed through the Tanzanian Parliament containing changes to the legal framework governing the natural resources sector in Tanzania. Based on an initial review and external legal advice, the Board and Management believe the legislative changes – as passed by the Tanzanian parliament – would not cause or prevent Volt from progressing with its current business strategy and plans for the development of the Bunyu project (refer ASX announcement 7 July 2017).

With the post quarter appointment of Ms. Angellah Kairuki as the Mining Minister, Volt is looking forward to working with the Tanzanian Mines department in acquiring relevant approvals and developing the Stage 1 Bunyu Graphite Project.

BUNYU GRAPHITE PROJECT DEVELOPMENT

With the recent legislative changes in Tanzania, clarity on sample export was not available during the quarter. Therefore, the 1,000 tonnes bulk ore sample program with AOYU has not been progressed. Nevertheless, negotiations were able to be continued via the use of graphite product and ore samples from our existing inventory to enable AOYU to progress their assessment of the Bunyu graphite product.

EXPLORATION

The planned Bunyu Stage 1 Feasibility Study drilling program advised in the previous quarter was pegged out to facilitate landowner access agreements. Feedback received was exceptionally encouraging with landowners appreciative of the consultation and positive about the development of the area. Post completion of the Share Purchase Plan announced on 5 September 2017, drilling is expected to commence in November and be completed during Q4 2017. However, given the timing and the onset of the wet season, drilling will be concentrated on diamond core collection to facilitate sample availability for further metallurgical test work to refine process flow sheets, and to address pit geotechnical aspects of the proposed Stage 1 development.

Please note that in Section 9 of the Appendix 5B, the exploration and evaluation expenditure assumes the entire drilling programme is completed during the quarter.

UPDATE ON EXPANDABLE GRAPHITE MARKET

Under Volt’s strategy to supply graphite product to the expandable market, Volt announced to the market on 10 August 2017, positive expansion results for the Bunyu One (Namangale North) graphite product. As stated, “This outcome is very positive for Volt, as it means the mine plan can be optimised to source ore from any part of the project mineral resource to meet customer demand for expandable graphite.” Volt will be using the positive results, in collaboration with its agreement partners, in finalising offtake agreements in parallel with the completion of the Stage 1 Feasibility Study and arranging of project development funding.

CORPORATE ACTIVITY OVERVIEW

On 5 September 2017, Volt announced a Share Purchase Plan (SPP) to existing eligible shareholders. The SPP is underwritten by Patersons Securities Limited to $1,500,000 with further sub-underwriting by Volt Chairman, Asimwe Kabunga and Non-Executive Director, Matt Bull to $300,000 each. The funds raised will be deployed towards the following key objectives:

  • Complete the feasibility study for the Stage 1 development;
  • Continue further funding negotiations, obtain project development approvals, advance offtake and cooperation agreements into binding agreements, enter into engineering and construction agreements and other material contracts for the Stage 1 development;
  • Support in-country costs associated with the Project; and
  • Fund general corporate and other expenses.

Post quarter end, the Company engaged Exotix Capital (“Exotix”) 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 issue 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 key focus on the Tanzanian, Kenyan and Ugandan capital markets respectively.

During the quarter the Company changed the name of its operating subsidiary in Tanzania to Volt Graphite Tanzania Limited (“VGT”) from Nachi Resources Limited. The decision was made to ensure a clear relationship between VGT and its parent company Volt and to eliminate any confusion with other companies operating in Tanzania. In addition, Volt’s flagship project is now referred to as the Bunyu Graphite Project and no longer the Namangale Graphite Project

 

Appendix 5B

 

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