Month: May 2019

VOLT ADVANCING FUNDING PATHWAYS FOR BUNYU STAGE 1 DEVELOPMENT

VOLT ADVANCING FUNDING PATHWAYS FOR BUNYU STAGE 1 DEVELOPMENT

Highlights

  • Approval for Tanzanian Note Issue continues to be progressed – meetings currently being held and discussions with senior government officials to complete this process
  • Notable progress made regarding Mauritian Bond Issue approval process – Volt targeting listing on Stock Exchange of Mauritius to provide additional funding flexibility
  • Discussions continue with North American and Asian institutions who have expressed strong interest in providing funding for the Bunyu Stage 1 development

Tanzanian-focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) provides the following update on the progress of its funding initiatives for the Stage 1 development of the Company’s Bunyu Graphite Project in Tanzania.

As previously reported (30 April 2019), Volt continues to advance a number of development funding strategies which include providing Volt with the options of Note/Bond listings on both the Dar es Salaam (“DSE”) in Tanzania and the Stock Exchange of Mauritius (“SEM”) respectively.

Following recently held in-country meetings and ongoing discussions with the Tanzanian Government, Volt can report that the approval process for the Note Issue is nearing the final stages.

Positive progress has also been made in respect to the Company’s proposed Bond Issue on the SEM, with a draft prospectus in the final stages of preparation based on meeting the information and disclosure requirements for the issue and listing of bonds by the SEM.

Further, discussions continue with North America and Asia-based institutions via Exotix Capital. The institutions have demonstrated a strong interest to provide funding for the development of the Stage 1 Bunyu Graphite Project.

The Company has been clear about its development funding strategy and expects to be able to provide further updates over the coming weeks as approval dates and precise Note/Bond prospectus offer and listing timeframes become available.

In the interim, the Company has secured $100,000 in short term working capital funding from two Directors ($50,000 from each of Mr Kabunga and Mr Hunt) on an unsecured, arm’s length commercial term basis repayable on or before 15 July 2019.

Volt’s CEO Trevor Matthews commented,

“The opportunity to progress listings in both Tanzania and Mauritius will provide Volt with important funding flexibility and access to a much larger pool of investors to raise the US$40 million needed to complete the Stage 1 development program at Bunyu.

Although our Tanzanian listing process has taken longer than originally forecast, it should be remembered that Volt is the first mining company to pursue a DSE debt listing and we are now nearing the final stages of the approval process which is very encouraging.

“The level of interest received recently from investors in Tanzania and Mauritius, along with North American and Asian institutions, is a testament to the world-class quality of the Bunyu Project and we look forward to finalising this funding process so we can turn our attention to the start-up of development works as quickly as possible.”

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
QUARTERLY ACTIVITIES REPORT TO 31ST MARCH 2019

QUARTERLY ACTIVITIES REPORT TO 31ST MARCH 2019

Highlights:

  • Bunyu Stage 1 development funding advances
  • $1.3 million short-term loan facility completed and drawn to provide additional funding flexibility whilst Stage 1 development funding is completed
  • Delegation from Japan and China who visited the Bunyu Project to investigate potential graphite supply
  • Important recent changes to Tanzanian Minerals Regulations, including:
    • Graphite concentrate with TGC grade above 65% permitted for export
    • Positive local content regulation amendments

Tanzanian-focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or, the “Company”) is pleased to report on the Company’s activities for the quarter ended 31 March 2019.

March Quarter Activities Overview

Bunyu Development Funding

The Company and its advisor, Exotix Capital, continue to progress the planned Tanzanian Note offer and listing of the Notes on the Dar es Salaam Stock Exchange (DSE).

In December 2018, the Company received approval from the Dar es Salaam Stock Exchange PLC to list its Notes on the DSE. On 25 January 2019, Volt Graphite Tanzania Plc (VGT) received correspondence from the Tanzanian Capital Markets and Securities Authority (CMSA), which included an unrealistic commercial condition for the Note Offer to proceed.

Exchange of correspondence and discussions with the CMSA to remove the condition continued during the March quarter and were extended to other government departments and officials to promote the benefits of Tanzanian investors participating in the funding of the development of the largest graphite resource in Tanzania.

In parallel, Volt and Exotix Capital has advanced 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 progressed discussions with US and Asian institutional funds for participation in the Stage 1 development funding.

The Company and Exotix remain positive that Bunyu Stage 1 development funding will be successfully completed.

Project Engineering and Construction

The Company commenced a process to select an engineering firm for the role of Project Management Contractor (PMC) in late Q4 2018.

A recognised engineering services firm has been selected and the Company has commenced contract negotiations with the selected firm.

Once the contract terms and conditions have been finalised and contracts executed by the parties, an announcement will be made in relation to this important appointment.

Bunyu Site Visit

During March, the Company hosted a delegation from Japan and China who visited the Bunyu Project to ascertain the potential for graphite product supply.

The delegation inspected the planned mine and ore processing sites, reviewed local infrastructure and services, travelled the logistics route between the project site to the Port of Mtwara and reviewed the Mtwara port facilities.

Figure 1: Delegates from Japan and China visit the Bunyu 1 Project site.

Tanzanian Mineral Regulations Update

During the quarter, the Government of Tanzania released “The Mining (Mineral Value Addition) Guidelines, 2019” which outlines important requirements to in-country value addition in relation to mineral processing.

Volt has noted several recent positive changes including the permitting of graphite concentrate with a grade above 65% total graphitic carbon (“TGC”) to be exported after laboratory tests and payment of the applicable royalty.

This is a pleasing development for Volt, with two binding offtake agreements confirmed and a further offtake agreement to be signed following completion of development funding and commencement of construction.

The Company also welcomes amendments to the local content regulations in Tanzania which now require that a minimum of 20% of a company’s shares must be held by Tanzanian citizens to qualify as an indigenous Tanzanian company. This has been significantly reduced from the previous 51% minimum requirement.

Change of Registered Office

The Company has changed its registered office and principal place of business to Suite 10 Level 25, 108 St Georges Terrace Perth WA 6000. Volt’s postal address has also changed to the above address. The Company’s telephone number remains unchanged as +61 (0)8 9486 7788.

Short Term Funding

In January, the Company secured a short-term (6-month) funding facility of $1.33 million with a face value of $1.5 million, providing added funded flexibility over the coming months while the Company completes the discussion and documentation for the Stage 1 development funding.

The funding facility will not be dilutionary to existing shareholders as no equity will be issued during the six-month loan period. The Company has commenced discussions on additional working capital funding to accommodate the extended duration for the completion of development funding and enable the Company to meet its nearterm expenditure commitments both in Australia and Tanzania.

Funding options under discussion include the re-financing and extension of the existing bridge finance facility, an equity raising and/or a mezzanine facility and are expected to be finalised in the near future.

Management Commentary

Volt Resources CEO Trevor Matthews said:

“This quarter we have maintained our focus on successfully completing the funding process, which will enable the commencement of the Stage 1 development program at Bunyu.”

“Although our development funding process has taken longer than anticipated, we are optimistic that a solution will be reached in the near-term. While we acknowledge the delay in proceedings is frustrating, the immediate impact is offset by the near-term flexibility provided by the interim bridging funding facility secured in January.”

“We are excited by what beckons over the next six to twelve months and look forward to providing further updates 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

Posted by Volt Resources in Company News