Bunyu Development Funding Update


Volt provides an update on its Bunyu Project development funding activities.

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 further information please contact:

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