Month: January 2019

BUNYU DEVELOPMENT FUNDING UPDATE

BUNYU DEVELOPMENT FUNDING UPDATE

Tanzanian-focused flake graphite developer Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) provides the following update on its Bunyu Project development funding activities.

Volt announced to ASX on 14 December 2017 that it is seeking to raise US$40 million by way of the issue of Tanzanian Bonds or Loan Notes (‘Notes’) to fund the development of Stage 1 of the Bunyu Graphite Project. The Note Offer is by Volt’s wholly-owned subsidiary Volt Graphite Tanzania plc (“VGT”) through the issue of a Prospectus to potential investors in East Africa.

The issue of the Prospectus to investors requires the approval of Tanzania’s corporate regulator the Capital Markets and Securities Authority (CMSA). In addition, the Notes are to be listed on the Dar es Salaam Stock Exchange (DSE) which required the approval of the DSE. The DSE approval was received and announced to the market on 13 December 2018.

The Company has been engaged in ongoing discussions and exchange of correspondence with the CMSA. Correspondence received from the CMSA on Friday 25 January 2019 unfortunately set unrealistic commercial terms for the Note Issue to proceed. Volt will therefore continue to discuss the Note Issue with the CMSA in the short term, to ensure an appropriate commercial balance is reached.

In parallel, Volt will continue to advance alternative funding options including, but not limited to a Note Issue and Listing on the Stock Exchange of Mauritius (“SEM”) using principally the same Tanzanian Note Prospectus, and US based institutional funds participation in the Stage 1 development funding.

Further information on the funding options progress will be announced to the market at the appropriate time.

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

Posted by Volt Resources in Company News
SHORT TERM FUNDING ADDITIONAL INFORMATION

SHORT TERM FUNDING ADDITIONAL INFORMATION

Tanzanian-focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) provides further information regarding the short-term (6-month) loan facility announced on 22 January 2019 (see ASX announcement titled “Short Term Funding and Appendix 3Y” dated 22 January 2019).

Key terms of the loan are as follows:

Lenders RiverFort Global Capital Limited and Yorkville Advisors Global, LP
Borrower
Volt Resources Ltd
Loan Face Value and Drawn Amount The Face Value of the loan or amount repayable by Volt on maturity is A$1,500,000. The amount drawn by Volt under the Facility is $1,339,286.
Interest No interest is payable under the facility.
Maturity 6 months from drawdown.
Loan Term 6 Months with the option of a 6 month extension at the Company’s election.
Convertibility This a debt instrument and there is no equity conversion option during the 6 month loan period
Security A charge over Volt Australia Ltd’s assets which are minor in Australia. The charge includes its shareholding in its 100% owned Tanzanian subsidiary Volt Graphite Tanzania plc. The security does not extend to the Tanzanian assets held by Volt Graphite Tanzania plc. A charge over Mr Asimwe Kabunga’s shareholding in Volt Resources Ltd (see Appendix 3Y lodged with ASX on 22 January 2019).

The loan was taken out in the ordinary course of business and is not considered material with regards to the Company’s current plans and activities. As disclosed in the “Response to ASX Share Price and Volume Query” announcement dated 21 January 2019, recent share price and volume movements are considered to be related to the Company’s Stage 1 Bunyu Graphite Project development progress and the status of fund raising activities 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

Posted by Volt Resources in Company News
SHORT TERM FUNDING AND APPENDIX 3Y

SHORT TERM FUNDING AND APPENDIX 3Y

Tanzanian-focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to advise that it has secured a short-term (6-month) loan facility with a further 6-month extension option providing Volt with A$1.3 million.

Importantly, the loan facility will provide added flexibility over the coming months whilst the Company progresses listing approval from the Tanzanian Capital Markets and Securities Authority (“CMSA”) for the issue of the Note prospectus. The loan facility will not be dilutionary to existing shareholders as no equity will be issued during the initial 6-month loan period.

The loan is secured via a charge over Volt Resources assets and Mr Asimwe Kabunga’s shareholding in Volt. There is no security provided over the Tanzanian assets due to the need to keep them unsecured for the Bunyu project development funding.

Attached is an Appendix 3Y regarding the share security provided by the Volt Chairman, Mr Asimwe Kabunga. It is important to note there is no change in Mr Kabunga’s shareholding in Volt.

Volt Non-executive Directors Mr Stephen Hunt and Mr Alwyn Vorster expressed their appreciation of Mr Kabunga’s assistance in securing the loan funds.

Appendix 3Y

Short Term Funding Additional Information

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

Posted by Volt Resources in Company News