Company News

BUNYU PROJECT MINING LICENCE APPLICATIONS ADVANCED

BUNYU PROJECT MINING LICENCE APPLICATIONS ADVANCED

Tanzanian-focused flake graphite developer Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to advise that the two Mining License Applications (“MLA”) for the Company’s Bunyu Graphite Project have been recommended for approval within the Tanzanian Ministry of Minerals online Cadastral system.

As previously advised (see ASX announcement dated 8 February 2018), Volt has lodged two MLA’s with the Ministry of Minerals of Tanzania which covers the footprint for both the Stage 1 and 2 developments at the Bunyu Graphite Project.

This recommendation represents an encouraging step forward in the MLA approval process, however this status change does not constitute final approval and receipt of the ML’s. Further updates on the ML approval process will be provided to shareholders in due course.

Tanzanian Note Issue Prospectus Update

Volt continues to advance the US$40 million Note Issue, for which an updated Prospectus was lodged with the Tanzanian Capital Markets and Securities Authority (“CMSA”) and the Dar es Salaam Stock Exchange (“DSE”) on August 17, 2018.

Correspondence with the CMSA has been ongoing and positive with the Company preparing to lodge a further update of the Prospectus and associated documents. Volt is satisfied with the recent progress in relation to regulatory approval of the Prospectus with a conclusion expected in the near future.

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
ENVIRONMENTAL APPROVAL RECEIVED FOR BUNYU GRAPHITE PROJECT

ENVIRONMENTAL APPROVAL RECEIVED FOR BUNYU GRAPHITE PROJECT

Tanzanian focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to report the completion of another key milestone in the development of the Bunyu Graphite Project, with the Company’s wholly-owned subsidiary Volt Graphite Tanzania Ltd, having received the Environmental Impact Assessment (EIA) Certificate from the National Environment Management Council of Tanzania (NEMC).

Importantly, the EIA certificate signed by the Honourable Minister of State in Vice President’s Office for Union Affairs and Environment Hon. January Makamba, represents the final pre-requisite for the granting of Volt’s Mining Licence (ML) and one of the final remaining major milestones in terms of Government permitting for the Bunyu Graphite Project.

The Bunyu Mining Licence Applications (MLA’s) were submitted to the Minister for Minerals in February 2018 (see ASX release dated 8 February 2018). Recently the Tanzanian Minerals Commission issued revised formats for the Integrity Pledge and Local Content Plan to be submitted with the Company’s MLA’s.

These have been completed and lodged with the Commission. Once the EIA certificate is lodged with the Commission the Company expects the two ML’s to be granted soon thereafter.

The Bunyu MLA’s and EIA certificate, along with the previously advised approval of the resettlement
compensation under the Resettlement Action Plan (ASX announcement dated 30 April 2018), covers the area required for the Stage 1 development and Stage 2 Expansion Project.

Bunyu North Pit

Bunyu 1 view looking North to North Pit location on the rising ground in the foreground

Volt’s Environmental and Social Impact Study submission was prepared in accordance with the
requirements of relevant Tanzanian legislation, including the Environmental Management Act 2004; the Environmental Impact Assessment and Audit Regulations 2005 as well as the Mineral Sector Environmental Impact Assessment Guidelines 2014.

The requirements and procedures required to obtain mineral rights are stipulated in the Mining Act 2010 with 2017 amendments and the associated Mining Regulations 2018.

Volt’s Chairman, Asimwe Kabunga, commented,

“This is a significant milestone in the development of our Bunyu Project, as it transitions the Company a step closer to receiving the all-important Bunyu Mining Licences.

“Volt would like to take this opportunity to thank the local communities and government parties within the Lindi and Mtwara regions, along with the National Environmental Management Council, our Tanzanian specialist consultants Tansheq Limited and their sub-consultants, and our staff for their support, commitment, tenacity and diligence throughout this important process.”

“Looking ahead we remain firmly focused on advancing the Bunyu Project towards Stage 1 production, and we look forward to providing our shareholders with further updates on funding and development progress in the near-term.”

 

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
UPDATED TANZANIAN PROSPECTUS LODGED & CO-OP AGREEMENT SIGNED

UPDATED TANZANIAN PROSPECTUS LODGED & CO-OP AGREEMENT SIGNED

Tanzanian-focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to provide the below update following the lodgement of an amended prospectus pursuant to the Company’s proposed US$40 million Note Issue and the signing of a strategic cooperation agreement with a major Chinese graphite company.

Amended Tanzanian Note Issue Prospectus Lodged

Volt advises that the amended prospectus for the US$40 million Note Issue was lodged with the Tanzanian Capital Markets and Securities Authority (“CMSA”) and the Dar es Salaam Stock Exchange (“DSE”) on Friday, August 17.

This followed correspondence from Volt and a meeting with the CMSA in late June after receipt of the CMSA’s initial review of the Note prospectus. The prospectus was also updated to include the recently published Stage 1 Feasibility Study results (see ASX release dated 31 July 2018) and the recent binding offtake agreement signed with Qingdao Tianshengda Graphite (see ASX release dated 2 August 2018).

Volt’s management would like to advise that as this is the first resources-based Note to be listed on the DSE, the Regulators have duly spent time understanding the differences from existing issuances which comprise banks and telecom companies. Volt and its advisors are pleased with the discussions and progress to date and remain confident of a successful outcome in respect to the proposed development funding.

Offtake Cooperation Agreement Signed

As previously reported (see ASX release dated 30 June 2018), Volt’s management has been participating in discussions and negotiations with a number of Chinese groups in regards to securing additional binding offtake agreements for the Company’s Bunyu Graphite Project.

As a result of these ongoing discussions, Volt is pleased to announce that its 100%-owned subsidiary – Volt Graphite Tanzania (“VGT”) – has signed a cooperation agreement with one of China’s largest graphite companies, HAIDA Graphite.

Under the agreement, VGT and HAIDA will exchange relevant information and conduct testing on VGT’s graphite product samples, as both parties look to build a working relationship for the future supply and purchase of Bunyu graphite product.

HAIDA has extensive mining, processing and sales experience, producing and supplying a range of graphite products to customers in China and international markets including Japan, Korea, the US and Western Europe.

Further discussions with other potential offtake partners are also advancing well and the Company looks forward to providing further updates on offtake agreements in due course.

Volt’s Chief Executive Officer, Trevor Matthews, commented:

“I am pleased to report that our amended prospectus has now been lodged with the relevant authorities in Tanzania, and we are now moving closer towards the issuance of the prospectus to sophisticated investment groups in key East African financial markets.

“Whilst in the early stages, our cooperation agreement with HAIDA serves as a precursor to the signing of a potential offtake agreement in due course, and we are very pleased to be working with another of the major graphite players in China.

“It is clear that Volt is continuing to receive very positive feedback from a number of parties regarding demand for Bunyu’s coarse flake graphite product which holds us in very good standing as we target the start-up of Stage 1 production and subsequent large-scale Stage 2 expansion.”

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 SIGNS SECOND BINDING OFF-TAKE AGREEMENT FOR BUNYU GRAPHITE PROJECT

VOLT SIGNS SECOND BINDING OFF-TAKE AGREEMENT FOR BUNYU GRAPHITE PROJECT

Highlights:

  • Binding offtake agreement signed with major Chinese graphite company – Qingdao Tiangshengda Graphite – for 9,000 tonnes per annum of Bunyu Graphite Product over 5 years
  • Nominal 10,000tpa of Stage 1 production now committed via binding offtake agreements when combined with the binding offtake agreement with US based graphene company Nano Graphene Inc (NGI)
  • Negotiations continuing for additional binding offtake for the Stage 1 development

Tanzanian focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to announce another key milestone for the Bunyu Graphite Project Stage 1 development, with the signing of a binding sales agreement (“the Agreement”), by 100% Volt subsidiary, Volt Graphite Tanzania Ltd, with Qingdao Tianshengda Graphite Co. Ltd. (“Tianshengda”) for 9,000 tonnes per annum of Bunyu Graphite Product over five years.

Tianshengda is an integrated graphite processor and distributor across China and internationally. Based in Laiki City, Shangdong Province, Tianshengda has a substantial annual capacity to further process graphite by producing value-added products including expandable graphite, flake graphite and powder, as well as supplying graphite to the lithium-ion battery market. The Agreement covers 9,000 tonnes per year of Bunyu Graphite Product for five years, with an option for a further five year term by mutual agreement. The Agreement will incorporate the size ranges of products to be produced in both the Stage 1 development and the planned expansion to Stage 2 at Bunyu.

The Agreement is conditional upon Volt Graphite Tanzania (“VGT”) confirming that it has completed the construction and commissioning of the Stage 1 Project for mine development and upon completion of the processing plant for the treatment of sufficient ore from the Project.

The selling price under the Agreement will be in USD and CIF Qingdao Port, China. The price will be determined by the prevailing market price for flake graphite products, adjusted for mesh size and TGC %, and agreed prior to the commencement of each contract half year. Importantly, this provides VGT and the Bunyu Project exposure to the anticipated growing demand and stronger prices for quality flake graphite.

Board and Management Commentary:

Volt’s Chief Executive Officer, Trevor Matthews, commented:

“We are very pleased to secure this significant binding sales agreement for our Bunyu Product, and we are delighted to be partnering with such a highly-respected company such as Tianshengda. “Furthermore, this second binding offtake agreement is a strong validation of the confidence in Volt’s Bunyu Graphite project. With strong demand in the market and in particular for large flake graphite, we are continuing to progress discussions with additional parties in respect to further offtake opportunities. “Looking ahead we now remain firmly focused on driving the Bunyu Project towards first production and we look forward to providing shareholders with further updates on corporate and operational progress in the near-term.”

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 30 JUNE 2018

QUARTERLY ACTIVITIES REPORT TO 30 JUNE 2018

Highlights

  • Volt completes Stage 1 Feasibility Study post-quarter end for the flagship Bunyu Graphite Project in Tanzania.
    • Stage 1 based on a mining and processing plant annual throughput rate of 400,000 tonnes of ore to produce on average 23,700tpa of graphite products positioning Volt as a meaningful participant in the global flake graphite market;
    • Stage 1 financial analysis showed favourable NPV and IRR over a payback period of 4.4 years;
    • Pre-tax NPV (10%) of US$18.6M;
    • Pre-tax IRR of 21.0%;
    • EBITDA of US$93.6M over 7 year Stage 1 project period – average annual EBITDA of $US13.1M;
    • Stage 1 FS indicates average FOB operating cost of US$664 per tonne and start-up capital cost estimate of US$31.8M;
  • Key objective of Stage 1 development is to establish infrastructure and market position in support of the development of the significantly larger Stage 2 expansion project.
  • Draft prospectus for the US$40 million Tanzanian Note Issue under review with the Tanzanian Capital Markets and Securities Authority (CMSA) and the Dar es Salaam Stock Exchange (DSE)
  • $2,000,000 placement completed, funds to be deployed towards repaying the Convertible Loan Facility and working capital requirements at Bunyu Project
  • Additional offtake agreements continue to be advanced following positive meetings with potential Chinese partners
  • Resettlement Action Plan (RAP) compensation process completed
  • Environmental and Social Impact Statement (ESIS) for Bunyu Graphite Project under review – key step towards Stage 1 development and production

Volt Resources Limited (ASX: VRC) (“Volt” or, the “Company”) is pleased to provide shareholders with its quarterly activities report for the period ended 30 June 2018.

Management Commentary

Volt Resources CEO Trevor Matthews commented:

“The June quarter represented an important period of consolidation for the Company, with the Stage 1 Feasibility Study now complete, which represents an important step forward in Volt’s strategy to become one of leading global producers of natural coarse flake graphite.

“From a funding perspective, we are continuing to make good progress in regards to our US$40 million Tanzanian Note issue, which will provide the capital to fund the Stage 1 development of Bunyu.

“With a number of key approvals and funding developments on the horizon, we expect the September quarter to be another highly productive period for the business as we move towards the first production from Bunyu.”

June Quarter Activities Review

Stage 1 Feasibility Study

Post quarter end, the Company completed the Feasibility Study (“FS”) into the Stage 1 development of the flagship Bunyu Graphite Project located in Tanzania (Refer ASX announcement dated 30 July 2018, released 31 July 2018).

The Stage 1 development is focussed on the development of a nominal 20,000 to 24,000tpa graphite mine and processing facility in Tanzania with exports of graphite products planned into the USA, China and other markets.

The development incorporates a significant amount of infrastructure, utilities and mine development work that benefits the Stage 2 expansion including the site access road, plant laydown area, tailings storage facility, waste dumps, stockpile areas, open pit development, mining operations, accommodation village and water supply.

The proposed Stage 2 development is an expansion of Stage 1 production based on the market demand for Bunyu’s graphite products and leveraging the large-scale graphite mineral resource and Bunyu’s close proximity to critical infrastructure. The Stage 2 expansion is targeted to meet expected significant increases in demand for coarse flake graphite in the expandable graphite market and fine flake size products for battery anode material and other existing and evolving industrial uses for micro carbon products.

During the Stage 1 FS the Company, working with its Tanzanian subsidiary, Volt Graphite Tanzania Ltd (VGT) also conducted the following activities:

  • Completed and lodged the Environmental and Social Impact Study (ESIS). The ESIS has been reviewed by the NEMC and Technical Advisory Committee which has involved a site visit and technical review meetings and is now in the final stage for the Minister for Environment approval. It is important to note the environmental approval incorporates the area to be developed under Stage 1 and the Stage 2 expansion.
  • Lodged two Mining Licence (“ML”) applications covering the 18km2 footprint for Stage 1 and the Stage 2 expansion. The recent appointment of the Mining Commission has resulted in a large number of licence applications being approved. Once the environmental approval is obtained, the Company expects the mining licences to be approved soon thereafter.
  • Completed the Resettlement Action Plan and received all approvals for the compensation arrangements with approximately 1,000 people either farming or living within the mining licences area.

Offtake Agreements Advanced

Volt’s management team visited China in April to advance discussions on binding offtake agreements for the Bunyu Graphite Project.

Meetings were held with CNBM General Technology (formerly known as CNBMGM), GEM, Tianshengda and two new groups, Haida and Baixing, to progress offtake agreements or commence exchange of project information and product samples for longer term supply arrangements.

The feedback received following the meetings indicated strong demand for coarse flake material above 100 mesh (150 micron) in size for use in the expandable graphite market, which strongly supports Volt’s strategy to become a primary expandable graphite supplier. The parties are now progressing with exchanging draft binding offtake agreements in relation to Stage1 offtake. Further updates on these discussions will be provided to shareholders in due course.

Volt and Tianshengda

Figure 1 (L-R) : Trevor Matthews (Volt) and Mr Shu (Tianshengda)

 

Volt and GEM

Figure 2 (L-R) : Mark Hoffman (Volt), Mr Gao Hongguo (GEM) and Trevor Matthews (Volt)

 

Resettlement Action Plan Completed

As previously advised (see “Bunyu Update” ASX Announcement dated 17 April 2018), the Resettlement Action Plan (RAP) compensation process has now been completed and the associated Valuation Report of compensation payable to people affected by the Bunyu Project development has been approved by the Government Chief Valuer and has been approved at the district and regional level.

Volt continues to work closely with relevant government authorities to ensure the process is compliant with Tanzanian legislation and to appropriately compensate all people affected by the project development.

The drafting of the implementation plan for the RAP is ongoing.

Bunyu Graphite Project Key Approvals

Earlier this year, the Company lodged its Environmental and Social Impact Study (“ESIA”) with the National Environmental Management Council (ASX announcement dated 23 January 2018), and its Mining Licence Applications (“MLA’s”) with the Ministry of Energy and Minerals of Tanzania, which will incorporate the footprint for Stages 1 and 2 of the Bunyu Project.

Volt received positive initial feedback regarding both the the ESIA and the MLAs during the quarter, and as advised (see “CEO Update” ASX Announcement from 7 June), the Company expects final approvals to be granted in the September quarter.

US$40 million Tanzanian Note Issue Draft Prospectus

The draft prospectus for the US$40 million Note Issue that has been lodged with the Tanzanian Capital Markets and Securities Authority (“CMSA”) and the Dar es Salaam Stock Exchange (“DSE”) is currently under review with comments received from both the DSE and CMSA being incorporated into the draft prospectus.

An updated prospectus which incorporates the Stage 1 Feasibility Study results, is in the process of being re-lodged with both regulators. Once the prospectus content has been agreed with the regulators, the Company will soon thereafter proceed with the issue of the prospectus to sophisticated investors in the East African financial markets to raise the Bunyu project development funds.

Corporate Activity Overview

During the quarter, Volt received binding commitments for a share placement to raise $2 million (before costs). Patersons Securities (“Patersons”) acted as the Lead Manager to the Placement, with the majority of the shares being subscribed for by institutional investors.

Under the Placement, Volt issued 86,956,523 new fully paid ordinary shares to sophisticated and professional investors at A$0.023 per share.

Funds received will be deployed towards repaying the Convertible Loan Facility (see ASX Announcement dated 7 July 2017), and towards working capital requirements incurred as Volt progresses its project approvals and financing programs in Tanzania.

Resignation of Non-Executive Director

Post-quarter end, Matthew Bull tendered his resignation as Non-Executive Director of the Company, effective 9 July 2018.

Appendix 5B

Posted by Volt Resources in Company News
POSITIVE STAGE 1 FEASIBILITY STUDY FOR BUNYU GRAPHITE PROJECT

POSITIVE STAGE 1 FEASIBILITY STUDY FOR BUNYU GRAPHITE PROJECT

Stage 1 Feasibility Study Highlights:

  • Key objective of Stage 1 development is to establish infrastructure and market position in support of the development of the significantly larger Stage 2 expansion project
  • Stage 1 based on a mining and processing plant annual throughput rate of 400,000 tonnes of ore to produce on average 23,700tpa of graphite products positioning Volt as a meaningful participant in the global flake graphite market
  • Stage 1 financial analysis delivers favourable NPV and IRR over a payback period of 4.4 years o Pre-tax NPV (10%) of US$18.6M o Pre-tax IRR 21.0%
  • Total EBITDA of US$93.6M over 7 year Stage 1 project period – average annual EBITDA of US$13.1M
  • Development schedule of 12 months to first ore production – project development approvals and Stage 1 funding initiatives are well advanced
  • Stage 1 FS indicates average FOB operating cost of US$664 per tonne and start-up capital cost estimate of US$31.8M
  • Stage 1 development incorporates a significant amount of infrastructure, utilities and mine development work that benefits the Stage 2 expansion
  • DFS for Stage 2 is planned to proceed concurrent with Stage 1 project development
  • Volt currently completing the final binding offtake agreements for substantially all of Stage 1 annual production

Tanzanian focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to report the completion of the Feasibility Study (“FS”) into the Stage 1 development of the Company’s flagship Bunyu Graphite Project located in Tanzania.

Board and Management Commentary

Volt’s Chief Executive Officer, Trevor Matthews, commented:

“The Stage 1 Feasibility Study is another important step forward in Volt’s plan to become one of the top three global producers of natural flake graphite.

“The Company has been implementing a two stage development strategy following the completion of a large scale Pre-Feasibility Study (“PFS”) in December 2016. Concurrent with the PFS completion, Volt announced the largest graphite JORC Mineral Resource in Tanzania and one of the largest in the world.

“Following a detailed strategic review of product markets and financial markets, in May 2017 Volt announced a clear pathway to transition the Company into a globally significant producer of material quantities of high quality graphite products. It was decided that this accelerated pathway would be achieved via the development of the Bunyu Project over two stages.

Stage 1 is focussed on the development of a nominal 20,000 to 25,000tpa graphite mine and processing facility in Tanzania with planned exports of graphite products into the USA, China and other markets. The proposed Stage 2 development is an expansion of Stage 1 production based on the market demand for Bunyu’s graphite products and leveraging the large scale graphite mineral resource and Bunyu’s close proximity to critical infrastructure. The Stage 2 expansion is targeted to meet expected significant increases in demand for coarse flake graphite in the expandable graphite market and fine flake size products for battery anode material and other existing and evolving industrial uses for micro carbon products.”

Volt’s Non-Executive Chairman, Asimwe Kabunga, commented:

“This is an exciting period for the Company and its shareholders as we work on this important near-term transition from developer to producer. The delivery of a robust Stage 1 Feasibility Study is a key step towards unlocking the considerable underlying value of our world-class Bunyu Project. Once funding is obtained, the Company will proceed with the Front End Engineering and Design for Stage 1 and place orders for long lead time components. Concurrent with the Stage 1 development, Volt also plans to commence work on the definitive feasibility study for the Stage 2 expansion.”

Development Update

During the Stage 1 Feasibility Study the Company working with its Tanzanian subsidiary, Volt Graphite Tanzania Ltd (VGT), has also conducted the following activities:

  • Completed and lodged the Environmental and Social Impact Study (ESIS). The ESIS has been reviewed by the NEMC and Technical Advisory Committee which has involved a site visit and technical review meetings and is now in the final stage prior to forwarding to the Minister for Environment for approval. It is important to note the environmental approval incorporates the area to be developed under Stage 1 and the Stage 2 expansion.
  • Lodged two Mining Licence (“ML”) applications covering the 18km2 footprint for Stage 1 and the Stage 2 expansion. The recent appointment of the Mining Commission has resulted in a large number of licence applications being approved. Once the environmental approval is obtained, the Company expects the mining licences to be approved soon thereafter.
  • Completed the Resettlement Action Plan and received all approvals for the compensation arrangements with approximately 1,100 people either farming and/or living within the mining licences area. This is an important milestone as without the compensation arrangements being approved, the Bunyu Project would not be able to proceed to development. As explained previously the footprint that the compensation area covers incorporates the Stage 1 and Stage 2 expansion project.
  • Held meetings with Volt’s graphite offtake partners and now completing the final binding offtake agreements for substantially all of Stage 1 annual production. These offtake agreements are in addition to the existing binding offtake agreement with US based graphene company, Nano Graphene Incorporated.
  • Progressed with the development funding of Stage 1 through the planned issue of US$40m of Tanzanian listed Notes (Bonds). With the assistance of the Company’s advisors Exotix Capital, Orbit (sponsoring broker), Clyde and Co (legal) and Ernst & Young (Reporting Accountant) the Company has prepared and lodged a prospectus with the Tanzanian regulators, the Dar es Salaam Stock Exchange and the Capital Markets and Securities Authority for their review and approval. Comments on the prospectus have now been received from both regulators and the Company is engaged in finalising the changes to the prospectus requested and some additional matters discussed with the CMSA. Once the content of the prospectus and other matters have been agreed, the Company will proceed to issue the prospectus to qualified institutional buyers and sophisticated investors in East Africa. The prospectus remains open for 10 business days following which the Company will proceed to a development decision on the Bunyu Stage 1 project.

The Stage 1 development incorporates a significant amount of infrastructure, utilities and mine development work that benefits the Stage 2 expansion including the site access road, plant laydown area, tailings storage facility, waste dumps, stockpile areas, open pit development and mining, accommodation village, water supply, etc.

Read Stage 1 Feasibility Study Report

 

Posted by Volt Resources in Company News
RESIGNATION OF NON-EXECUTIVE DIRECTOR

RESIGNATION OF NON-EXECUTIVE DIRECTOR

Matthew BullTanzanian focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) wishes to advise that Mr Matthew Bull has tendered his resignation as Non-Executive Director of the Company, effective immediately.

Matt has expressed his ongoing support for the Company and towards the future development of Volt’s world-class Bunyu Graphite Project in Tanzania.

Mr Asimwe Kabunga, Volt’s Chairman commented, “I would like to take this opportunity to thank Matt for his hard work and commitment in building and growing Volt Resources into what it is today. On behalf of the Board and the Management of Volt Resources I would like to wish Matt all the very best in his future endeavours.”

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
PLACEMENT RAISES A$2 MILLION

PLACEMENT RAISES A$2 MILLION

Tanzanian focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to advise that it has received binding commitments for a share placement to raise A$2 million (before costs).

Patersons Securities (“Patersons”) acted as the Lead Manager to the Placement. There was strong demand for the Placement with the majority of the new fully paid shares being subscribed for by institutional investors.

Funds raised will be used to repay the Convertible Loan Facility (see ASX Announcement dated 7 July 2017), and for working capital requirements as Volt progresses its project approvals and financing programs in Tanzania.

Under the Placement, Volt will issue 86,956,523 new fully paid ordinary shares to sophisticated and professional investors at A$0.023 per share. Patersons will receive 8,000,000 options with an exercise price of A$0.06 expiring on 30 April 2019 (the same expiry date as the current unlisted options on issue) as part remuneration for its role as Lead Manager. Settlement and issue of the new fully paid ordinary shares subscribed for under the Placement and the issue of the Patersons’ options is expected to occur on 20 June 2018. The Placement and the Patersons’ options will be issued under the Company’s available ASX Listing Rule 7.1 placement capacity and do not require shareholder approval.

Mr Asimwe Kabunga, Volt’s Chairman commented, “With the Company now on the cusp of delivering a number of company making milestones including obtaining key project development approvals and securing development funding, the Board believes it was timely to strengthen its near-term cash position.

“Further, we are pleased with the level of support for the capital raising by institutions and sophisticated investors and the Company looks forward to providing further updates on key corporate and operational developments in the near-term.”

Bunyu Graphite Project Update

Importantly, with the Feasibility Study nearing completion at the Company’s flagship Bunyu Project in Tanzania, Volt’s monthly expenditure is significantly reducing.

As previously advised (see CEO Update dated 6 June 2018), Volt is awaiting environmental approvals followed by the mining licence approvals that will incorporate the footprint for Stages 1 and 2 of the Bunyu Project.

The draft prospectus for the US$40 million Note Issue that has been lodged with the Tanzanian Capital Markets and Securities Authority (“CMSA”) and the Dar es Salaam Stock Exchange (“DSE”) is currently under review with comments received from the DSE which have been incorporated into the prospectus. The Company has just received comments from the CMSA is now working on our response. Once the prospectus content has been agreed with the regulators, the Company will soon thereafter proceed with the issue of the prospectus to sophisticated investors in the East African financial markets to raise the Bunyu project development funds.

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
INVESTOR STREAM INTERVIEW WITH CEO TREVOR MATTHEWS

INVESTOR STREAM INTERVIEW WITH CEO TREVOR MATTHEWS

( Click the Orange Play button above to listen to the audio interview )

 

Emerging Tanzanian-focused graphite producer Volt Resources is said to make waves in the coming months with a number of near term catalysts scheduled to be completed on the corporate and operational fronts.

Volt Resources CEO Trevor Matthews speaks with Investor Stream regarding Volt’s upcoming milestones and provides an update on the company’s ongoing strategy.

Posted by Volt Resources in Company News
QUARTERLY ACTIVITIES REPORT TO 31 MARCH 2018

QUARTERLY ACTIVITIES REPORT TO 31 MARCH 2018


Highlights

  • Volt further strengthens financial position with $1.0 million proceeds from the exercise of remaining listed options received during the quarter with $4.7 million received in total.
  • Draft prospectus for the US$40 million Tanzanian Note lodged with the Tanzanian Capital Markets and Securities Authority (CMSA) and the Dar es Salaam Stock Exchange (DSE).
  • Mining Licence Applications lodged with the Ministry of Energy and Minerals of Tanzania – representing a key approval required for the Stage 1 development of Bunyu
  • Environmental and Social Impact Statement for Bunyu Graphite Project lodged – key step towards Stage 1 development and production

CEO Commentary

“Volt remains focused on completing the Stage 1 development of the Bunyu Graphite Project within the next 12 to 15 months, and a number of important operative foundations were completed over the course of the March quarter.

“The lodgement of documents such as the Environmental and Social Impact Statement, mining licence applications and the completion of the Resettlement Action Plan with associated valuation report lodged for approval with the Chief Valuer represent the progress of a number of critical components of the Company’s strategy.

“Furthermore, the regulatory review of the draft prospectus for the US$40 million Tanzanian Note issue is now well underway.

“With these developments anticipated to be finalised in the June quarter, Volt is entering an exciting phase and remains on track to develop its world-class graphite business.”

March Quarter Activities Review

Environmental and Social Impact Study Lodged

During the quarter, the Company lodged its Environmental and Social Impact Study (“ESIS”) with the National Enviromental Management Council (ASX announcement dated 23 January 2018).

The lodgement of the ESIS follows the completion of a significant body of work including flora and fauna surveys, heritage surveys, and stakeholder identification, including public consultation and the development of environmental and social monitoring and management plans.

The National Environment Management Council (“NEMC”) conducting a site verification visit in February, which was followed by a technical advisory committee meeting in Dar es Salaam in early March. Further information for inclusion in the ESIS has been requested arising from these review processes. The Company is currently preparing the additional information.

The ESIS covers the area required for the Stage 1 and Stage 2 expansion projects at Bunyu. Following assessment by NEMC, the ESIS will be lodged with the Environment Minister for approval. Once approved, Volt will be issued with its Environmental Certificate for the Bunyu project.

Resettlement Action Plan

The Resettlement Action Plan (“RAP”) has now been completed and the associated Valuation Report of compensation payable to people affected by the Bunyu Project development was lodged and subsequently approved by the Government Chief Valuer. Further approvals were obtained from the district and regional level post quarter end.

Volt has been working closely with relevant government authorities to ensure this process is compliant with Tanzanian legislation and that all people affected by the project development will be appropriately compensated. The drafting of the implementation plan for the RAP is in progress.

Mining Licence Application Lodged for Bunyu Graphite Project

In February, the Company lodged its Mining Licence Applications (“MLA’s”) with the Ministry of Minerals of Tanzania (the “Ministry”) covering the Company’s flagship Bunyu Graphite Project (see ASX Announcement 8 February).

The MLAs cover both the Stage 1 development, where an estimated 400,000tpa of ore will be processed producing a nominal 20,000tpa of graphite products, and the Stage 2 expansion at Bunyu which is targeted for completion by late 2020.

Stage 1 Feasibility Study

The Stage 1 Feasibility Study (“FS”) is now due to be completed in the June quarter. The FS completion timing has been adjusted due to resource sample export delays in Tanzania early in the March quarter. This in turn has moved the delivery of the Stage 1 Resource and Reserve estimations, mine production schedule and associated calculations for product revenue and mining and processing costs to Q2 2018.

The amended timing for completion of the FS will have minimal to no impact on the overall development schedule as this aligns the FS completion with the Note issuance and funding timing and likely receipt of development approvals (Environmental Certificate and ML approvals).

Investor Site Visit

The Bunyu Graphite Project was visited by a number of potential Note investors in February.

The investor visit covered the planned mine and mineral processing site and the Mtwara port facilities. Attendees included representatives from Exotix and Orbit Securities Limited and local community leaders from Utimbula and Namangale.

The discussion of the Bunyu Project covered, infrastructure access, community programs and graphite markets, and was presented by Volt management including CEO Trevor Matthews

Proposed Stage 1 pit location

Figure 1: Visitors and Volt staff and management at the proposed Stage 1 pit location

Edison Research Note

Leading London-based investment research and advisory firm Edison released a research report on the Company in March. To read the report, visit Edison Investment Research Report on Volt Resources

Corporate Activity Overview

During the quarter, Volt successfully completed the raising of gross proceeds $4.7 million through the exercise of 235,648,431 listed options at $0.02 (ASX announcement dated 9 January 2018). A majority of these funds were received in the December 2017 quarter with the remaining $1.0 million in proceeds received this quarter.

The listed options exercise process was strongly supported, with approximately 90% of Volt optionholders exercising their options. The shortfall of approximately 24 million options was jointly underwritten and taken up by Empire Capital Partners Pty Ltd (“Empire”) and Cove Capital Pty Ltd (“Cove”).

Importantly, the additional funding from the SPP, placement and option exercise provided Volt with the required financial flexibility to aggressively progress the planned Stage1 development of the Company’s flagship Bunyu Graphite Project in Tanzania.

Volt has previously advised it has engaged Exotix Capital to undertake a US$40 million Tanzanian Note issue to raise the required funding for the development of Stage 1 of the Bunyu project.

The draft prospectus was lodged with the Tanzanian Capital Markets and Securities Authority (CMSA) and the Dar es Salaam Stock Exchange (DSE) on March 27.

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