Company News

VOLT RESOURCES STRIVES TO BE LEADING NATURAL FLAKE GRAPHITE PRODUCER

VOLT RESOURCES STRIVES TO BE LEADING NATURAL FLAKE GRAPHITE PRODUCER

Volt Resources Ltd (ASX:VRC) CEO Trevor Matthews details progress and aspirations for the Bunyu Graphite Project in Tanzania, as demand and supply for the commodity shifts, sending up prices.

Speaking about a potential note issue on the Dar es Salaam Stock Exchange, Matthews says, “we’re the first miner to proceed with this particular funding pathway… we’re certainly fairly confident, and so are our advisors, that we’ll be successful in raising the US$40 million we need. [That] combined with the completion of mining license approvals and also environmental approvals means that we can be on track to commence construction of our 20,000 tonne per annum stage one project in the current quarter.”

 

Posted by Volt Resources in Company News
BUNYU GRAPHITE PROJECT ON TRACK

BUNYU GRAPHITE PROJECT ON TRACK

Key Points:

  • 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.

Furthermore, Volt advises the Resettlement Action Plan (“RAP”) has now been completed and the associated Valuation Report of compensation payable to people affected by the Bunyu Project development has been approved by the Government Chief Valuer and is nearing approval completion at the district and regional level. Volt has been working closely with relevant government authorities to ensure this process is compliant with Tanzanian legislation and that all people affected by the project development are appropriately compensated. The drafting of the implementation plan for the RAP is underway.

The Mining Licence (“ML”) Approval is also progressing on track and is currently awaiting the appointment of the Minerals Commission, the body which approves ML applications, and the receipt of the Environmental Certificate from the environmental approval process.

Volt would also like to advise that the Stage 1 Feasibility Study (“FS”) is also due to be completed this quarter. The FS completion timing has been adjusted due to RC sample export delays in Tanzania during January and February this year. This, in turn, has moved the delivery of the Stage 1 Resource and Reserve calculations, mine production schedule and associated product revenue and mining and processing costs to Q2 2018.

The amended timing for completion of the FS will have minimal to no impact on the overall development schedule as this aligns the FS completion with the Note issuance and funding timing and likely receipt of development approvals (Environmental Certificate and ML approvals).

For and on behalf of Volt Resources Limited

Trevor Matthews
Chief Executive Officer

 


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

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.

 

Posted by Volt Resources in Company News
PROSPECTUS LODGED FOR US$40 MILLION TANZANIAN NOTE ISSUE

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 high-quality graphite products.

Further update on the funding process will be provided to shareholders in due course.

For and on behalf of Volt Resources Limited

Trevor Matthews
Chief Executive Officer

 

1 Previously referred to as a Bond Issue, the term Note is preferred in the East African debt markets. The Note Issue has identical terms to those previously disclosed as a Bond Issue. Refer ASX announcement 14 December 2017.


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Posted by Volt Resources in Company News
EDISON RESEARCH – RECHARGED AND READY FOR A TRANSFORMATIONAL YEAR

EDISON RESEARCH – RECHARGED AND READY FOR A TRANSFORMATIONAL YEAR

2018 should be a pivotal year in Volt’s history, potentially seeing it migrate from graphite developer to producer.

However, a number of milestones remain, including offtake agreements on commercial terms (although term sheets have been signed with certain offtakers), mining licence approval and of course the financing of Bunyu Phase 1.

With Bunyu Phase 1 intended to be largely debt funded via a Tanzanian bond issue, and short-term equity funding completed for current work programmes, we see a lower risk of future dilution until Bunyu enters production.

Read Full Report

Posted by Volt Resources in Company News
SUCCESSFUL INVESTOR SITE VISIT AT BUNYU GRAPHITE PROJECT

SUCCESSFUL INVESTOR SITE VISIT AT BUNYU GRAPHITE PROJECT

Tanzanian-focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to advise that a site visit to the Bunyu Graphite Project was recently held for a number of potential bond investors.

Volt is currently in the process of undertaking a US$40 million Tanzanian Bond Issue in partnership with highly experienced, specialist investment bank Exotix Capital (“Exotix”). Funds raised from the completion of the Bond Issue will be deployed towards the Stage 1 development of the Bunyu Graphite Project, targeting the production of ca. 20,000tpa of high-quality graphite products.

Volt has the largest mineral resource in Tanzania and is aiming to be one of the top three global suppliers of natural graphite by 2020.

The investor visit covered the planned mine and mineral processing site and the Mtwara port facilities. Attendees included representatives from Exotix and Orbit Securities Limited (“Orbit”) and local community leaders from Utimbula and Namangale.

The discussion of the Bunyu Project covered infrastructure access, community programs and graphite markets, and was presented by Volt management including CEO Trevor Matthews. Exotix Head of Natural Resources, Andrew Moorfield, discussed the planned bond issue process and key terms.

“The Volt site tour confirmed that East African investor appetite for USD linked Tanzanian listed Fixed Income instruments is robust,” Mr. Moorfield commented. “The Volt growth story and management strength is reflected in solid investor feedback.”

Proposed Stage 1 pit location

Figure 1: Visitors and Volt staff and management at the proposed Stage 1 pit location

 

Orbit has been appointed as Co-Lead Advisor and Placing Broker for the Tanzanian Bond Issue alongside Exotix. International law firm Clyde & Co. Tanzania has been appointed as Legal Counsel and Ernst and Young Tanzania as Reporting Accountant for the preparation of the Bond Prospectus.

Volt is preparing to lodge the draft prospectus for the bond issue with the Tanzanian regulators within the next week. The Capital Markets and Securities Authority (CMSA) and the Dar es Salaam Stock Exchange (DSE) are required to approve the prospectus prior to distribution to potential bond investors in Tanzania, Uganda and Kenya.

Nachingwea ariport

Figure 2: Visitors arrive at Nachingwea ariport, which is approximately 50km north of the Bunyu Project

 

For and on behalf of Volt Resources Limited

Trevor Matthews
Chief Executive Officer

 


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

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Posted by Volt Resources in Company News
LODGEMENT OF MINING LICENCE APPLICATIONS

LODGEMENT OF MINING LICENCE APPLICATIONS

Highlights

  • 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)

 


 

Tanzanian-focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to advise that it has lodged its Mining Licence Applications (“MLA’s”) with the Minister for Minerals of Tanzania (the “Minister”) covering the Company’s flagship Bunyu Graphite Project.

Importantly, the MLA’s cover both the Stage 1 development, where an estimated 400,000tpa of ore will be processed producing a nominal 20,000tpa of graphite products, and the Stage 2 expansion at Bunyu which is targeted for completion by late 2020 and will be based on the PreFeasibility Study metrics of 3.8Mtpa of ore feed to produce 170,000tpa of graphite product.

As the footprint of the Stage 1 Bunyu Project also accommodates the Stage 2 development – with both development stages set to utilise the same mine infrastructure – two MLA’s have been lodged with the Minister. The total area covered by the MLA’s is approximately 18 km², with single ML’s limited to 10km² in size.

As previously advised (see ASX announcement dated 23 January 2018), the lodgement of the MLA’s follows the submission of the Environmental and Social Impact Statement, both of which are key approvals for Volt’s near-term development plans at Bunyu.

Following assessment and approval by the National Environment Management Council (“NEMC”), Volt will be issued with its Environmental Certificate for the project.

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 near-term development of what will be a globally significant graphite asset.

 

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

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Posted by Volt Resources in Company News
QUARTERLY ACTIVITIES REPORT TO 31 DECEMBER 2017

QUARTERLY ACTIVITIES REPORT TO 31 DECEMBER 2017

HIGHLIGHTS

  • Decision to proceed with US$40 million Tanzanian Bond Issue in partnership with highly experienced Exotix Capital
  • Proceeds of proposed Bond issue to complete Stage 1 development of Bunyu Graphite Project targeting production of 20,000tpa of graphite products
  • Testwork confirms premium graphite product at Bunyu North which will be the main source for Stage 1 mine and Stage 2 expansion development
  • Excellent testwork results from Bunyu North include C content of 99.6% and O content of 0.08% with no impurities found – high quality, defect-free material
  • Offtake agreements further advanced with North American offtake partner Nano Graphene Inc. increasing graphene production and confirming premium quality of Bunyu Graphite Product
  • Volt further strengthens financial position with completion of $2.3 million SPP, $0.9 million top-up placement and exercise of listed options raising $4.7 million during the quarter and early January
  • Environmental and Social Impact Statement for Bunyu Graphite Project lodged post quarter end – 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 December 2017.

Management Commentary

“The December quarter was a highly productive period for the business with a number of key corporate and operational milestones achieved in line with our strategy to complete the Stage 1 development of the Bunyu Graphite Project within the next 12 months.

“Further, the Company is extremely encouraged by the robust level of support it received during the quarter from both new and existing investors – culminating in the securing of approximately $7.9 million in additional capital – a significant outcome for the business.

“Our priority focus is now on progressing the Stage 1 development of Bunyu over the coming months which we expect will be further underpinned by the securing of additional development capital via the Company’s Tanzanian bond issue arranged with Exotix Capital.

“Volt is entering an exciting phase in its evolution as a world-class graphite business and we look forward to providing further updates at both a corporate and operational level in due course.”

December Quarter Activities Review

Strategic Cooperation and Offtake Agreements

During the December 2017 quarter, testwork confirmed 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.

Previous testwork completed by NGI had 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.

Volt Bunyu Graphite Testwork by NGI

Figure 1: Raman Spectra results outlining the quality of graphene from Bunyu North product samples

 

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 above).

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).

Further product marketing samples and testwork have been on hold until the completion of funding activities and the recent drilling program to provide material for the production of graphite samples.

Key Approvals / Government and Community Relations

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.

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.

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 businesses.

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.

The Environmental and Social Impact Assessment study continued during the December 2017 quarter with the Company electing to complete further flora and fauna survey work and heritage surveys. This additional work was incorporated in the Environmental and Social Impact Statement recently lodged with the National Environmental Management Council (ASX announcement dated 23 January 2018).

The Resettlement Action Plan (RAP) has been the subject of recent community meetings and Volt is currently working in collaboration with the relevant government authorities, to ensure that the RAP report is compliant and expedites the grant of the mining license.

Bunyu Graphite Project – Geology and Mine Planning

As planned, the Bunyu Stage 1 FS drilling programme commenced in November and concluded in late December. Below is a summary table of the drilling completed over the Bunyu 1 Deposit (previously Namangale North):

Drilling Type No. of Holes Total Metres
Reverse Circulation 56 1,452
Diamond Core 16  463
Water Bores 2   175
Total 74   2,090

The total amount of drilling completed over the entire Bunyu Project now comprises:

Drilling Type No. of Holes Total Metres
Reverse Circulation 232 13,289
Diamond Core 55 3,292
Water Bores 7 521
Total 294  17,102

 

The drilling completed in the December 2017 quarter was designed to infill the existing drilling at Bunyu 1 to provide the Stage 1 operations with grade control information to allow for appropriate mine scheduling activities and for resource estimation purposes. Furthermore, the drilling was designed to provide further sample for metallurgical test work, pit and mine infrastructure drilling to assist in developing pit wall angles and soil stability analysis. Finally, the water bores were to assist in hydrological modelling for water supply and pit de-watering.

Samples from this drilling programme have been partially dispatched. After the quarter, the diamond core for metallurgical test work was dispatched and received at ALS in Balcatta, Western Australia for Stage 1 FS test work. However, the resource samples for graphite analysis have been held up due to regulatory changes and approvals from the Tanzanian Mines Department. Volt expects these to be resolved in the March quarter and will provide an update accordingly.

Optiro has been engaged to update the mineral resource estimate for Bunyu 1, with Orelogy/Optiro forming an alliance to develop the mine plan and suitable supervision of the geotechnical and hydrological aspects of the study. Work commenced on this during the quarter and is expected to be completed in the March 2018 quarter for these facets of the overall Feasibility Study.

Overall, the December 2017 quarter was successful in completing the field work to assist the completion of the Bunyu Stage 1 FS.

Figure 2: Core from the recent diamond drilling programme at Bunyu 1

Bunyu Graphite Project Development Plan

The Stage 1 FS builds on the Pre-Feasibility Study (PFS) reported in December 2016 and internal studies of development options undertaken in 2017, leading to the commencement of the Stage 1 FS for a nominal 20,000tpa of graphite product in November 2017.

Most of the same consulting groups that were involved in the PFS continue to provide services at the FS level with this continuity assisting the project development and retention of project knowledge. Battery Limits are coordinating the FS engineering, ATC Williams the Tailings Storage Facility engineering design, and geotechnology, hydrology and ARD consultants also providing consulting services for the geology and mine planning scope to ensure a project-wide focused solution.

As advised above the diamond core from the drilling completed in December 2017 has been received at ALS in Balcatta and the metallurgical testwork program will be undertaken in Q1 2018 to finalise the flowsheet layout and equipment selection. This builds on the testwork undertaken in the PFS and the subsequent programs of work including that undertaken at Xinhai engineering laboratories and the product market feedback in 2017.

The engineering and testwork, along with progressing the development approvals, and the associated scopes of miscellaneous works to support the FS, are aimed at enabling a project development decision in Q2 2018.

The scope of Stage 1 will be complementary to the future Stage 2 expansion project with a number of the risks and opportunities better understood and mitigated from the project study and execution of Stage 1 construction and commissioning.

Corporate Activity Overview

On 1 November 2017, Volt announced the Share Purchase Plan (SPP) to existing eligible shareholders closed heavily oversubscribed raising $2,338,975. Paterson Securities, who underwrote the SPP, facilitated the placement of a further $900,000 to sophisticated and professional investors with shares from the placement issued on 6 November 2017.

Post the end of the December 2017 quarter, Volt advised the Company had successfully raised gross proceeds of $4.7 million through the exercise of 235,648,431 listed options at $0.02 (ASX announcement dated 9 January 2018).

The listed options exercise process was strongly supported, with approximately 90% of Volt optionholders exercising their options. The shortfall of approximately 24 million options was jointly underwritten and taken up by Empire Capital Partners Pty Ltd (“Empire”) and Cove Capital Pty Ltd (“Cove”).

Importantly, the additional funding from the SPP, placement and option exercise provides Volt with the required financial flexibility to aggressively progress the planned Stage 1 development of the Company’s flagship Bunyu Graphite Project in Tanzania.

Volt has previously advised it 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 meetings with targeted investment groups in Tanzania, Uganda and Kenya in late November/early December 2017, Exotix recommended Volt proceed with a formal bond prospectus process and the listing of the bonds on the Dar es Salaam Stock Exchange in Tanzania.

Volt and Exotix have sized the debt transaction at US$40 million which will allow net project development and working capital funding of ~US$31 million after taking into account funding for a Debt Service Reserve Account (DSRA) and costs of the issue. The facility interest and bond maturity payments can be serviced by projected Stage 1 operating cashflows.

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

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.

For and on behalf of Volt Resources Limited

Trevor Matthews
Chief Executive Officer

 


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

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Posted by Volt Resources in Company News
VOLT LODGES ENVIRONMENTAL AND SOCIAL IMPACT STATEMENT

VOLT LODGES ENVIRONMENTAL AND SOCIAL IMPACT STATEMENT

HIGHLIGHTS

  • 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

 


 

Tanzanian-focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to advise that it has lodged its Environmental and Social Impact Statement (“ESIS”) with the National Environment Management Council (“NEMC”) for the Company’s flagship Bunyu Graphite Project in Tanzania. This follows a thorough Environmental and Social Impact Assessment (“ESIA) study.

As previously advised (see ASX announcement dated 26 September 2017), the lodgement of the ESIS follows the completion of a significant body of work including flora and fauna surveys, heritage surveys, and stakeholder identification, including public consultation and the development of environmental and social monitoring and management plans.

The ESIA study covers the area required for the Stage 1 and Stage 2 expansion projects at Bunyu. The study forms a key component of Volt’s near-term development plans for Bunyu and following assessment and approval by NEMC, Volt will be issued with its Environmental Certificate for the project.

Furthermore, Volt is currently preparing its Mining Licence application (“MLA”) for submission with the Mining Commission following the recent publication of the new mining regulations in Tanzania. This process is progressing on-track and the submission of the MLA is the final key approval required for the commencement of Stage 1 development works at Bunyu.

Volt looks forward to updating shareholders shortly on the positive progress of the Exotix Capital US$40m bond issue and the Stage 1 Feasibility Study (FS) for the Bunyu Project.

 

Volt’s Chief Executive Officer, Trevor Matthews commented:

“Volt continues to make significant progress towards the proposed commencement of Stage 1 production at the Bunyu Project, and the submission of the ESIS is another notable step forward. “Our team remains focused on delivering a number of key near-term milestones including the submission of the MLA, the completion of the US$40m bond issue and the finalisation of the Stage 1 Feasibility Study for Bunyu– so we expect a steady flow of operational milestones to be executed over the coming months.

“We are focused on continually de-risking the development of the Bunyu project and together with the recent securing of an additional $4.7 million funding, Volt enters the year in a strong position to unlock the true potential of the Bunyu project.

“We look forward to keeping our shareholders informed on key corporate and operational developments during this busy period in Volt’s development.”

 

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.


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Posted by Volt Resources in Company News
EXERCISE OF LISTED OPTIONS RAISES $4.7M TO PROGRESS BUNYU

EXERCISE OF LISTED OPTIONS RAISES $4.7M TO PROGRESS BUNYU

Highlights

  • Heavily supported exercise of listed options (approximately 90% exercised before underwriting) supports Volt’s development strategy and production pathway for the Bunyu Graphite Project
  • Volt’s robust cash position provides the financial capacity to aggressively progress the Stage 1 Development of flagship Bunyu Graphite Project
  • Volt proceeding with US$40m Tanzanian bond issue financing with Exotix Capital for Stage 1 Development with planned completion Q1 2018
  • Prices for flake graphite remained strong in the December 2017 quarter with increases across all product sizes driven by increasing demand from lithium ion battery manufacturers and flame retardant building materials

Tanzanian-focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to advise that it has successfully raised gross proceeds of $4.7 million through the exercise of 235,648,431 listed options at $0.02.

The listed options exercise process was strongly supported, with approximately 90% of Volt optionholders exercising their options. The shortfall of approximately 24 million options was jointly underwritten and taken up by Empire Capital Partners Pty Ltd (“Empire”) and Cove Capital Pty Ltd (“Cove”) (see ASX announcement dated 8 December 2017).

Importantly, this additional funding provides Volt with the required financial flexibility to aggressively progress the planned Stage1 development of the Company’s flagship Bunyu Graphite Project in Tanzania, with the Stage 1 Feasibility Study expected to be completed in late Q1 2018.

Volt’s near-term strategy is to develop Bunyu Stage 1 to process 400,000tpa of ore and produce a nominal 20,000tpa of graphite products. The Stage 1 development is to produce bulk graphite product which will both satisfy the existing offtake agreement and the non-binding offtake agreements entered into with four potential Chinese customers1. The Bunyu Graphite Project has already demonstrated PFS project economics of US$1.3 billion NPV (pre-tax) with a 1.4 year payback based on annual production of approximately 170,000 tonnes of graphite product (see ASX announcement dated 15 December 2016).

As previously announced (14 December 2017), Volt is proceeding with its proposed US$40 million Tanzanian bond issue with specialist frontier markets investment bank Exotix Capital. Exotix is a market leader in structured finance packages for natural resource projects in African economies. The following link includes comments on African financing and Volt’s bond issue by Exotix Capital’s Head of Natural Resources Andrew Moorfield.

 

 

Volt’s Chief Executive Officer, Trevor Matthews commented:

“We are extremely pleased to have further strengthened our cash position through the successful exercise of the options, and the Volt’s Board and I would like to thank our loyal shareholder base for their continued support. I would also like to thank both Empire and Cove for their support throughout the process.

“Volt is now strategically positioned to execute on a number of operational milestones as part of the Stage 1 Development of Bunyu, with key near-term deliverables to include the finalisation of all project approvals and completion of the Stage 1 Feasibility Study this quarter.

“We will also concurrently advance our planned Tanzanian bond issue through our partnership with Exotix Capital aimed at securing the required funding for the development of Stage 1.

“It is also worth noting the recent funding success of Tanzanian based Swala Oil & Gas PLC, with Exotix Capital placing an initial tranche of US$25 million. This demonstrates Exotix’s strength in financing selected high quality natural resource projects in Tanzania.

“We are excited to be entering the New Year with a number of significant value catalysts in the short term and we look forward to keeping our shareholders updated on these corporate and operational developments over the coming months.”

 

For and on behalf of Volt Resources Limited

Trevor Matthews
Chief Executive Officer

 


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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 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