Month: December 2017

VOLT TO PROCEED WITH US$40M TANZANIAN BOND ISSUE

VOLT TO PROCEED WITH US$40M TANZANIAN BOND ISSUE

Highlights

  • 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 cash flows.

Importantly, the US$40m debt sizing allows meaningful participation from Tanzanian and Ugandan Pension Funds combined with other investment groups seeking fixed income investments.

Key Bond Terms

Issuer Volt Graphite Tanzania PLC (“Volt” or the “Issuer”)
Issuing Venue Dar es Salaam Stock Exchange EGM
Amount US$40,000,000 USD-linked Tanzanian Shilling Denominated
Greenshoe Rights Yes
Maturity 7 years, (2025)
Coupon Mid teens
Coupon Frequency Semi-Annual
Structure Coupon will be payable in cash
A Debt Service Reserve Account (“DSRA”) is to be withheld by the Issuer to service payments on the Notes for a period of twelve months
Payment Format US Dollar Linked: Coupon payments to investors will be paid at the market exchange rate on the day of coupon payment
Governing Law Tanzanian
Issuance Date February 2018

 

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.”

 

For and on behalf of Volt Resources Limited

Trevor Matthews
Chief Executive Officer

 

1 Refer to Volt’s ASX announcement titled “Pre-feasibility Study Completed” dated 15 December 2016. The Company confirms that it is not aware of any new information or data that materially affects the information included in this document and that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed.


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 SECURES $4.7M OPTION UNDERWRITING AGREEMENT

VOLT SECURES $4.7M OPTION UNDERWRITING AGREEMENT

Highlights

  • Volt enters into agreement with Empire Capital Partners and Cove Capital to jointly underwrite 233,648,431 options at a $0.02 exercise price raising $4.7 million
  • Underwriting of options follows the successful recent completion of Share Purchase Plan and Share Placement raising a combined $3.2 million
  • Strengthened cash position provides flexibility to deliver on near-term objectives including fast-tracking Stage 1 Development of flagship Bunyu Graphite Project
  • The Bunyu Graphite Project has already demonstrated key PFS Project Economics of US$1.3 billion NPV (pre-tax) with 1.4 year payback (see announcement 15 December 2016)
  • Exotix Capital US$30m bond issue financing for the Stage 1 Development of Bunyu (see announcement 25 October 2017) advancing with key updates anticipated shortly

 

Tanzanian-focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to advise that it has entered into an Option Underwriting Agreement (“the Agreement”) with Empire Capital Partners Pty Ltd (“Empire”) and Cove Capital Pty Ltd (“Cove”).

Under the Agreement, Empire and Cove have agreed to act as joint underwriters to exercise any shortfall arising from Volt’s 233,648,431 listed options exercisable at $0.02, with an expiry date of 31 December 2017 (“Options Exercise”). The total amount to be raised from the exercise of the listed options and therefore the amount underwritten is approximately $4.7 million (“Underwritten Amount”).

The securing of joint underwriters for the Options Exercise, follows the recently completed Share Purchase Plan (“SPP”) and Top-Up Placement (see ASX announcements dated 1 November 2017 and 3 November 2017), which successfully raised a combined $3.2 million from sophisticated and professional investors.

Pursuant to the Agreement, both Empire and Cove will receive a 6% fee for lead management and underwriting (inclusive of any sub-underwriting fees).

The Agreement includes standard terms and conditions for an agreement of this type including company representations and warranties, termination of the underwriting agreement by the underwriters in the event Volt’s share price falls below the exercise/strike price of $0.02 (2 cents) on a 2day closing VWAP basis, the S&P/ASX 200 falls by 10% or more from date of agreement being signed and a $100,000 termination fee, if the Company or Underwriters with cause terminate the agreement.

Volt’s Chief Executive Officer, Trevor Matthews commented:

“This is a significant development for the business as it shows confidence in our development plans for the Bunyu Graphite Project and provides a clear and flexible funding pathway for Volt’s immediate future.

“Following the recent oversubscribed SPP and Top-Up placement, Volt now has a very healthy cash position which enables us to fast-track a very focused and active development program for the Bunyu Project, as we target the commencement of Stage 1 construction next year with development debt funding options well advanced.

“We look forward to providing further corporate and operational updates to shareholders in the near-term.”

 

For and on behalf of Volt Resources Limited

Trevor Matthews
Chief Executive Officer

1 Refer to Volt’s ASX announcement titled “Pre-feasibility Study Completed” dated 15 December 2016. The Company confirms that it is not aware of any new information or data that materially affects the information included in this document and that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed.


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
POSITIVE MEETINGS WITH KEY TANZANIAN GOVERNMENT OFFICIALS

POSITIVE MEETINGS WITH KEY TANZANIAN GOVERNMENT OFFICIALS

  • Positive high-end discussions held this week with Tanzanian Government representatives regarding Bunyu Graphite Project development strategy
  • Key meeting held with Tanzanian Minister for Minerals Ms Angellah Kairuki as Volt aims to progress Mining Licence application and additional regulatory requirements
  • Volt has also further strengthened key ties with local groups following extensive community meetings in Bunyu North and Bunyu South respectively

Tanzanian-focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to advise that it has held a number of positive meetings with senior Tanzanian government and community officials in relation to the Stage 1 development of the Company’s flagship Bunyu Graphite Project in Tanzania.

The Bunyu Project is the largest JORC Mineral Resource deposit in Tanzania with 461Mt @ 4.9% TGC (comprising 20Mt Measured Mineral Resources @ 5.3% TGC, 155Mt Indicated Mineral Resources @ 5% TGC and 286Mt Inferred Mineral Resources @ 4.9% TGC) with 22.6Mt of contained graphite.

Minister for Mines Meeting

The Company is pleased to report that initial discussions with the recently appointed Tanzania Minister for Minerals, Ms Angellah Kairuki, were very positive and focused on the near-term development of the Bunyu Graphite Project, as well as the Company’s Mining Licence Application (“MLA”). Importantly, Ms Kairuki expressed her support for the project development. Ms Kairuki outlined important information in relation to the MLA and the recent legislation changes in Tanzania.

The meeting has provided a pathway for Volt to obtain the Mining Licence and commence the process of meeting other regulatory requirements for the project development, as well as the operation of the Bunyu Project.

Bunyu Regional Meetings

A very productive meeting with the new Mtwara Regional Commissioner Hon. Gelasius Gasper Byakanwa was also held, with Hon. Byakanwa expressing his support for the development of the Bunyu Graphite Project and his assistance where required.

Volt CEO with Mtwara Regional Commissioner

A key takeaway from the meetings completed this week is that the positive benefits of an export-oriented industry are well understood by many within the Tanzanian government and community. The development of Volt’s Bunyu Project will significantly boost regional employment. Volt will provide skills and safety training for local people to participate in the project development and opportunities for local and regional bAusinesses.

Furthermore, Volt’s government and community relations activities, combined with the Company’s contributions to community projects and emergency assistance, is building goodwill within the community and local levels of government.

Extensive meetings were held with community representatives from the Bunyu North villages of Utimbala, Namangale, the Bunyu South villages of Chidya and Chiwata. Representatives from the District Council, including the District Executive Director, attended to assist with the discussions on relocation compensation and other matters raised by the representatives at the meeting.

The meetings were successful in identifying the key community issues and building on the relationship with the community members. The support for the Bunyu Project development is clear. The Company is committed to communicating and working with the communities to continue to build and strengthen these relationships.

The Bunyu Project is located within two regions. Bunyu North and the location of the Stage 1 development is in Lindi region with Bunyu South located in the Mtwara region which also includes the Mtwara Port.

Volt CEO with Bunyu North & South reps
Volt’s Chief Executive Officer, Trevor Matthews commented:

“We are very grateful for those who took the time to meet with the Company this week, including The Honourable Ms Angellah Kairuki, who affirmed her commitment to foreign investment following her recent appointment as Tanzanian Minister for Minerals.

“I am also pleased to report that we continue to receive strong support and interest in the development of the project with future opportunities from the local Bunyu North and the Bunyu South villages respectively. We look forward to further building on these strong foundations over the coming months and years.”

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