Month: July 2019

QUARTERLY ACTIVITIES & CASHFLOW REPORTS

QUARTERLY ACTIVITIES & CASHFLOW REPORTS

Highlights:

  • Development funding options including the Tanzanian Note Issue approval advancing to secure US$40 million for the Stage 1 development of the Bunyu Graphite Project
  • US$1 million in funding secured from a European based high net worth investor
  • Riverfort/Yorkville debt facility restructured with maturity date extended to 14 September 2019
  • Mr Giacomo (Jack) Fazio appointed Non-Executive Director

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 30 June 2019.

June Quarter Activities Overview

US$40 million Tanzanian Note Issue Update
The Company and its advisor, Exotix Capital, continued to progress the planned Tanzanian Note Issue and listing of the Notes on the Dar es Salaam Stock Exchange (DSE). Volt advanced a number of development funding strategies in parallel which include providing Volt with the options of a Bond Issue and listing on the Stock Exchange of Mauritius (“SEM”) and private bond investment.

During and post quarter end, ongoing in-country discussions and meetings between Volt’s management team and the Tanzanian Government continued to take place, and the Company is confident that the approval process for the Note Issue is nearing the final stages.

Positive progress was also made in respect to the Company’s proposed Bond Issue and listing on the SEM, with a draft prospectus in the final stages of preparation and post quarter end an additional experts report being prepared to meet the information and disclosure requirements of the SEM. Further, discussions and project due diligence processes continue with North America, African and Asia-based institutions via Exotix Capital.

Project Engineering and Construction Contract negotiations with a recognised engineering services firm for the role of Project Management Contractor (PMC) continued with the development of final contract terms and conditions. The contract is planned to be executed by the parties in the near future to coincide with development funding nearing completion.

Tanzanian Mining Exhibition
The CEO and Volt Graphite Tanzania management attended a mining exhibition in the parliament grounds in Tanzania’s capital, Dodoma, over a two day period on May 26 and 27. The exhibition coincided with the Ministry for Minerals annual budget speech to the National Assembly. It provided an opportunity for the Company to present the Company’s Bunyu project and explain graphite mining and processing, product markets and project development activities to the Speaker of the House and members of parliament.

CEO Trevor Matthews welcoming the Speaker of the Tanzanian National Assembly Hon. Job Ndugai to the Volt booth during the Mining Exhibition at the Parliament grounds in Dodoma
(L to R) Volt CEO Trevor Matthews, Community Relations Manager Peter Dodi, Corporate Affairs Manager Godwin Nyelo and guest.

US$1 Million Corporate Funding Secured
In June, the Company secured US$1 million in working capital funding from Mr Lars Bader via the placement of 20,845,714 shares at 2.1c per share raising US$300,000, an 18-month loan facility for US$700,000 and 25,536,000 options with an exercise price of $0.04 per share with an 18- month maturity.

The funding provides flexibility to finalise the Tanzanian Note Offer approval as part of the Bunyu Stage 1 development funding process and assists with the corporate debt restructuring. The support from Mr Bader demonstrates the long-term underlying value in Volt’s Bunyu Project.

The Company also announced during the quarter financial support from two directors, with Mr Kabunga and Mr Hunt advancing $100,000 in short term working capital funding on an unsecured, arm’s length commercial term basis repayable on or before 15 July 2019.

Debt Facility Restructure
Subsequent to the reporting date, the Company advised the maturity date for the loan facility with RiverFort Global Capital and Yorkville Advisors (see ASX announcements dated 22 January and 23 January 2019) had been extended by two months, from 14 July 2019 to 14 September 2019.

The terms of the extension require an amount payable at execution of US$375,000, comprising a loan repayment amount of US$335,106 which reduces the total amount payable at maturity to US$664,894 from US$1 million and an extension fee of US$39,894

Board Changes
Post-quarter end, the Company appointed Mr Giacomo (Jack) Fazio as Non-Executive Director, following the resignation of Mr Alwyn Vorster. Mr Fazio is a highly experienced project, construction and contract/commercial management professional having held senior project management roles with Primero Group Limited, Laing O’Rourke and Forge Group Ltd. His experience ranges from feasibility studies through to engineering, procurement, construction, and commissioning of diverse mining, infrastructure, oil & gas and energy projects.

Change of Registered Office
The Company changed its registered office and principal place of business to Level 25, Suite 10 108 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.

Management Commentary
Volt Resources CEO Trevor Matthews said:

“We continue to drive the opportunity to progress bond issues in both Tanzania and Mauritius, which will provide Volt with important funding optionality and access to a larger pool of investors to raise the US$40 million needed to complete the Stage 1 development program at Bunyu.

“While we acknowledge that the process has taken longer than originally forecast, it should be noted that Volt is the first mining company to pursue a DSE and Mauritian debt issue and listing and we are now nearing the final stages of the approval processes in both jurisdictions which is very encouraging.

“With recent progress on corporate funding and the development funding process nearing a conclusion, Volt is very excited to be turning its focus towards the development of this world-class 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

Posted by Volt Resources in Company News
VOLT SHARE PURCHASE PLAN OFFER

VOLT SHARE PURCHASE PLAN OFFER

As announced on 22 July 2019, Tanzanian-focused flake graphite development company Volt Resources Limited (ASX: VRC) (Volt or the Company) is pleased to offer its existing eligible shareholders the opportunity to participate in Volt’s Share Purchase Plan (SPP or Plan).

A copy of the Volt Share Purchase Plan offer booklet has been dispatched to all eligible shareholders today. The SPP will be underwritten to $1.1 million by Patersons Securities Limited (Patersons) which is acting as Lead Manager and Underwriter to the SPP.

Under the Plan, eligible shareholders may apply to purchase up to $15,000 worth of new fully paid ordinary shares in the Company (New Shares) without paying brokerage or other transaction costs. Participation in the Plan is open to all holders of Volt shares as at 5.00pm (AWST) on Friday 19 July 2019 (Record Date) with a registered address in Australia or New Zealand (Eligible Shareholder).

The New Shares will be issued at a 20% discount to the volume weighted average price traded on the ASX during the 5 days immediately prior to the issue date of the New Shares. Under the Plan, Eligible Shareholders will be able to purchase parcels of New Shares valued at $1,000, $2,500, $5,000, $7,500, $10,000 or $15,000.

New shares under the SPP will rank equally with existing Volt shares. The Directors of the Company who are Eligible Shareholders on the Record Date intend to participate in the SPP. Full details and the terms and conditions of the SPP are included in the Share Purchase Plan offer document attached to this announcement.

The SPP indicative timetable is below and the Company may, at its discretion, vary any of the above dates (other than the Record Date) by making an announcement to ASX:

Record Date 5.00pm (WST) on Friday, 19 July 2019
Announcement Date Monday, 22 July 2019
Offer Documents mailed to Eligible Shareholders Tuesday, 23 July 2019
Offer opens Tuesday, 23 July 2019
Offer closes 5.00pm (WST) Friday, 16 August 2019
Issue price announced to ASX After close of market on Thursday, 22 August 2019
Allotment Date Friday, 23 August 2019
Shortfall and Top-up Placement (if any) settled Friday, 23 August 2019
Despatch of holding statements/ confirmation advices for New Shares Monday, 26 August 2019
Commencement of trading of Shares Monday, 26 August 2019

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
VOLT RESOURCES LAUNCHES UNDERWRITTEN SHARE PURCHASE PLAN

VOLT RESOURCES LAUNCHES UNDERWRITTEN SHARE PURCHASE PLAN

Tanzanian-focused flake graphite development company Volt Resources Limited (ASX: VRC) (Volt or the Company) is pleased to offer its existing eligible shareholders the opportunity to participate in Volt’s Share Purchase Plan (SPP or Plan).

The SPP will be underwritten to $1.1 million by Patersons Securities Limited (Patersons) which is acting as Lead Manager and Underwriter to the SPP.

Under the Plan, eligible shareholders may apply to purchase up to $15,000 worth of new fully paid ordinary shares in the Company (New Shares) without paying brokerage or other transaction costs. Participation in the Plan is open to all holders of Volt shares as at 5.00pm (AWST) on Friday 16 August 2019 (Record Date) with a registered address in Australia or New Zealand (Eligible Shareholder).

The New Shares will be issued at a 20% discount to the volume weighted average price traded on the ASX during the 5 days immediately prior to the issue date of the New Shares in accordance with ASX Listing Rules.

Details of the Share Purchase Plan

Under the Plan, Eligible Shareholders will be able to purchase parcels of New Shares valued at $1,000, $2,500, $5,000, $7,500, $10,000 or $15,000. An SPP Offer Booklet with further details on the SPP will be despatched to Eligible Shareholders on 23 July 2019. New shares under the SPP will rank equally with existing Volt shares.

The Directors of the Company that are eligible intend to participate in the Plan.

Additionally, the Company has agreed that Patersons may facilitate an offer of New Shares to sophisticated and professional investors (Top-Up Placement) at the same issue price as under the Plan which, if conducted, will utilise the Company’s available Listing Rule 7.1 placement capacity to raise a further circa $1.1 million (before costs). The Company will update shareholders in due course on whether the Top Up Placement will proceed.

Funds raised under the SPP and Top-Up Placement (if conducted) will be used to repay the outstanding loan notes due to Riverfort Global Capital (Riverfort) and Yorkville Advisors (Yorkville) due 14 September 2019 (refer ASX announcement Monday, 15 July 2019) and for general working capital and corporate purposes.

In addition, the Company has reached agreement with Riverfort and Yorkville whereby the issue of unlisted options to the value of $189,969.60 under the Debt Facility Restructure will be cancelled in exchange for the payment of US$31,193.

An indicative timetable for the SPP is below. Other than the Record Date, the Company may change these dates and times at its discretion and without notice.

Record Date for Share Purchase Plan Friday 19 July 2019
Announce Share Purchase Plan Monday 22 July 2019
Despatch Share Purchase Plan booklet to shareholders and release Offer Letter on the ASX Tuesday 23 July 2019
Opening date for Share Purchase Plan Tuesday 23 July 2019
Closing date for Share Purchase Plan 5.00pm (AWST) on Friday 16 August 2019
Lodge Appendix 3B, Issue of new Shares under the Share Purchase Plan, Cleansing Notice Friday 23 August 2019
Quotation on ASX of new Shares under the Share Purchase Plan Monday 26 August 2019

Volt CEO, Trevor Matthews commented:

“Volt is continuing to make solid progress towards securing the funding required to complete the Stage 1 development of the Bunyu Graphite Project, and an important step in this process is ensuring the Company has an appropriate capital structure which includes the prepayment of short-term debt.

“We are pleased to provide our shareholders with the opportunity to participate in this capital raising at this exciting stage in our development.”

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
DEBT FACILITY RESTRUCTURE

DEBT FACILITY RESTRUCTURE

Tanzanian-focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) wishes to advise the maturity date for the loan facility with RiverFort Global Capital and Yorkville Advisors (see ASX announcements dated 22 January and 23 January 2019), has been extended by two months, from 14 July 2019 to 14 September 2019.

The terms of the extension require an amount payable at execution of US$375,000, comprising a loan repayment amount of US$335,106 which reduces the total amount payable at maturity to US$664,894 from US$1 million and an extension fee of US$39,894. There are no interest charges for the loan extension period.

In addition, unlisted options to the value of $189,969.60 and with a 36-month maturity will be issued to the lenders. The amount of options and the exercise price are yet to be calculated. The options will be issued under the Company’s available Listing Rule 7.1 placement capacity.

Development Funding Update

Volt continues to simultaneously advance several funding strategies to secure the US$40 million required to complete the Stage 1 development of the Bunyu Graphite Project in Tanzania.

Current strategies being pursued include a Note issue to be listed on the Dar es Salaam (“DSE”) in Tanzania and a similar Bond issue on the Stock Exchange of Mauritius (“SEM”).

The Company is pleased to advise that these initiatives continue to progress well, and Volt looks forward to reporting the outcome of these initiatives 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
VOLT BOARD TRANSITION

VOLT BOARD TRANSITION

Tanzanian-focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to advise that Mr Giacomo (Jack) Fazio has been appointed as a Non-Executive Director of the Company, replacing Mr Alwyn Vorster who has resigned as a Non-Executive Director.

Mr Vorster advised that his commitments as Managing Director of BCI Minerals Ltd require his exclusive attention for the foreseeable future. Mr Fazio is a highly experienced project, construction and contract/commercial management professional having held senior project management roles with Primero Group Limited, Laing O’Rourke and Forge Group Ltd.

His experience ranges from feasibility studies through to engineering, procurement, construction, and commissioning of diverse mining resources, infrastructure, oil & gas and energy projects.

Volt Chairman Asimwe Kabunga commented:

“On behalf of the Company I would like to thank Alwyn for his valuable contribution to Volt Resources during his three-year tenure on the Board. Alwyn contributed positively to the advancement of the Bunyu Graphite Project towards near-term production and we wish him well in the future.

“We are delighted to have Jack Fazio joining the Board, and his extensive project management, engineering and commissioning skills and experience will be a valuable addition to the team as we transition from the project studies and funding phase through to project development and the start of Stage 1 operations at Bunyu.”

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