Tanzanian-focused flake graphite developer Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) provides the following information in relation to the board and management’s focus on development funding and expenditure reduction initiatives.
With the Company having completed all of the activities to move the Bunyu Graphite Project to its development ready status, Volt is focused on securing the funding for the Stage 1 development. The current funding focus and the board changes described below have provided the opportunity to reduce expenditure to conserve cash while still working to create shareholder value through securing the Stage 1 funding.
Board and Management
The Board of Volt Resources has been restructured with the resignation of Non-executive Director Stephen Hunt. Current Chief Executive Officer, Trevor Matthews, has been appointed as Managing Director commencing 1 May 2020.
Chairman, Asimwe Kabunga, commented “Stephen has been a significant contributor to Volt’s success in his earlier role as Executive Chairman and later as a Non-executive Director. His marketing experience and commitment to the Bunyu graphite project were instrumental in the company now advancing with its project development funding process. On behalf of the Volt board we wish Stephen success with his future endeavours.”
“The board is pleased that Trevor has accepted the Managing Director role and we look forward to the continuation of our development funding efforts.
The Company structure will continue to be reviewed taking into account our development funding status and the broader macro-economic factors as a result of the global pandemic.”
Combined with the board changes, director fees will be reduced effective 1 May 2020 with the Chairman fee reduced to $3,000 per month and the Non-executive Director fee reduced to $2,000 per month. The Managing Director will be engaged under a consultancy agreement and will be paid a fixed monthly fee of $3,000 per month with incremental services charged at an hourly rate of $200 per hour.
A summary of the Managing Director’s material terms under the consultancy agreement is included below.
Expenditure Reduction
Over the past 12 months Volt has implemented a number of changes to reduce its cost structure including:
- Moving from a commercial office lease to a serviced office combined with remote working capability including the use of video conferencing since April 2019.
- The retrenchment of most Perth staff with services outsourced and a reduction in Tanzanian personnel during January and early February 2020.
- Reduced use of consultants for various corporate and administration activities.
Managing Director Consultancy Agreement Material Terms
| Commencement Date | 1 May 2020 |
| Monthly retainer fee Hourly rate | $3,000 $200 |
| Termination | One month’s notice by either party without cause. Immediate termination by Company for cause. |
| Performance Rights | To be agreed with the Volt Board and as approved by shareholders |
This announcement was authorised for release by the Board of Volt Resources Ltd.
FOR PERSONAL USE ONLY
For further information please contact:
Trevor Matthews
Managing Director
Tel: +61 8 9486 7788