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
VOLT SECURES US$1 MILLION CORPORATE FUNDING

VOLT SECURES US$1 MILLION CORPORATE FUNDING

Highlights

  • US$1 million investment by a European based high net worth investor as follows:
    • US$300,000 share placement completed at A$0.021
    • US$700,000 loan facility
    • Issue of 25,536,000 options exercisable at A$0.04 for potential gross proceeds of US$700,000
  • Funds provide working capital flexibility to complete the US$40 million Bunyu Stage 1 development funding process

Tanzanian-focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to advise it has secured US$1 million in working capital funding via the placement of 20,845,714 shares at 2.1c per share raising US$300,000 and a US$700,000 loan facility entered into with Mr Lars Bader.

The loan key terms are summarised below. Mr Bader will also be issued 25,536,000 options with an exercise price of $0.04 per share with an 18 month maturity. The 20,845,714 shares and 25,536,000 options will be issued under the Company’s available Listing Rule 7.1 placement capacity.

Exotix Capital acted as Structuring and Placement Advisor in arranging the funding package. As previously reported (31 May 2019), 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 on the Dar es Salaam (“DSE”) in Tanzania and a similar Bond issue on the Stock Exchange of Mauritius (“SEM”).

Head of Natural Resources at Exotix Capital, Andrew Moorfield, noted

“as one of the leading global graphite development juniors, Volt accessing sophisticated global investors reinforces its long-term growth potential.”

Volt’s CEO Trevor Matthews commented,

“This latest funding support from a sophisticated European based investor shows confidence in the Company’s ability to not only close the development funding, but also demonstrates the long-term underlying value in Volt’s Bunyu Project.

“With this interim funding now secured, we have the requisite funding flexibility to finalise the Tanzanian Note Offer approval as part of the development funding process. I would like to acknowledge the excellent work of Exotix Capital in facilitating the working capital funding.

“We continue to progress the Mauritian bond issue approval with the Stock Exchange of Mauritius and advance discussions with an African development bank and North American and African institutional investors.

“We are looking forward to finalising this funding process and shifting our focus towards advancing development at our world-class Bunyu Project.”

Key terms of the loan facility are as follows:

Lender Mr Lars Bader
Borrower Volt Resources Ltd
Amount US$700,000
Interest 20% per annum payable semi-annually
Repayment The amount repayable by Volt on maturity is US$1,050,000.
Maturity/Repayment Bullet payment 18 months from drawdown.
Loan Term 18 months
Security Unsecured

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
CEO INTERVIEW WITH INVESTOR STREAM

CEO INTERVIEW WITH INVESTOR STREAM

Volt Resources continues to progress funding initiatives for its Bunyu Graphite Project in Tanzania, and that is where Investor Stream finds CEO Trevor Matthews to update listeners on expediting the Company’s note issue lodged in Tanzania, as well as to provide the reasoning behind its push to list on the stock exchange of Mauritius.

Click the Play Button on the top left corner to listen to the interview
Posted by Volt Resources in Company News
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
CHANGE OF REGISTERED OFFICE

CHANGE OF REGISTERED OFFICE

Volt Resources Limited (ASX:VRC) (“Volt” or “the Company”) announces the change of its registered office and principal place of business to the following:

Level 25, Suite 10
108 St. Georges Terrace
Perth WA 6000
Australia

Volt’s postal address has also changed to the above address.

The Company’s telephone number remains unchanged as +61 (0)8 9486 7788. You can also contact the Company via email at info@voltresources.com

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 31 DECEMBER 2018

QUARTERLY ACTIVITIES REPORT TO 31 DECEMBER 2018

Highlights:

  • Mining Licences covering Stage 1 and 2 developments at Bunyu granted – all key approvals and licences now in place in preparation for commence of Stage 1 development work program
  • Tanzanian roadshow and North American investor meetings completed during the quarter
  • A$1.3 million secured via short-term funding facility to provide additional funding flexibility whilst Stage 1 development funding is completed

Tanzanian-focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or, the “Company”) is pleased to provide its quarterly activities report for the period ended 31 December 2018.


Receipt of Bunyu Mining Licences

In October, Volt received two Mining Licences (“ML’s”) ML 591/2018 and ML 592/2018 from the Mining Commission of the Ministry of Minerals of Tanzania, that cover the respective Stage 1 and Stage 2 development footprints at Bunyu. Importantly, Volt has now received all key approvals for the Stage 1 and Stage 2 developments of the Bunyu Graphite Project.

The ML’s cover a combined area of 17.71km2 and provide Volt with the exclusive right to develop the graphite resources within the ML area. The ML’s are effective for a period of 10 years and there is a right of further 10-year renewals under section 53 of the Mining Act.

Stage 1 Development Funding

As previously advised, Volt has engaged Exotix Capital as funding advisor to undertake a Tanzanian Note Issue to raise the required funding for the Stage 1 development at Bunyu (see ASX Announcement dated 25 October 2017).

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 Notes are to be listed on the Dar es Salaam Stock Exchange (DSE) which required the approval of the DSE.

On 13 December 2018, VGT received approval from the Dar es Salaam Stock Exchange PLC to list its Notes on the Dar es Salaam Stock Exchange (“DSE”).

In addition, the issue of the Note Prospectus to investors requires the approval of Tanzania’s corporate regulator the Capital Markets and Securities Authority (CMSA). Post the quarter end, VGT received correspondence from the CMSA on Friday 25 January 2019 which set unrealistic commercial terms for the Note Issue to proceed. Volt will 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”) that is using principally the same Tanzanian Note Prospectus, and US based institutional funds participation in the Stage 1 development funding.

Funds raised will be deployed towards the Stage 1 development of the Bunyu Graphite Project. A Definitive Feasibility Study (“DFS”) on the large-scale Stage 2 Expansion at Bunyu will also be undertaken concurrently with the Stage 1 development.

Roadshow and Investor Meeting Activity

During the quarter, Volt completed investor meetings in North America and an investor roadshow in East Africa. The Company is pleased to advise that strong interest was received from a number of investment funds and banks. Volt and Exotix Capital are continuing to actively progress a number of discussions in relation to the Stage 1 development funding requirements through 2019-2020.

A$1.3 Million Funding Facility Secured

Post-quarter end, the Company secured a short-term (6-month) funding facility of A$1.3 million, providing added funded flexibility over the coming months while the Company completes its development funding activities. The funding facility will not be dilutionary to existing shareholders as no equity will be issued during the 6-month loan period.

Research and Development Claim

During the quarter Volt lodged its income tax return and supporting R&D Tax incentive claim for the 2018 financial year, whereby the Company receives a 43.5% cash rebate on eligible R&D expenditure. This resulted in an R&D cash refund from the Australian taxation office of $641,173 in late December 2018, following which the Company repaid the $512,000 R&D loan received from the R&D Loan funder Radium Capital earlier in the quarter.

Project Development

In preparation for the planned development of Stage 1, four high quality responses were received from well credentialled and experienced engineering consultancies for the role of Project Management Consultant (PMC).

The four proposals were evaluated and post quarter end, a short list of proponents was interviewed to enable an appointment of the preferred engineering consultant in the new year. The selected PMC will manage the implementation of the Stage 1 development of the Bunyu Project in conjunction with Volt Graphite Tanzania.

Management Commentary

Volt Resources CEO Trevor Matthews commented:

“Our immediate priority remains on successfully completing our Stage 1 development funding process to enable the commencement of the Stage 1 development program. The interim bridge funding facility secured in January has provided added flexibility whilst the funding process is finalised.

“We look forward to providing further updates on the development funding process and the commencement of development work throughout this quarter.”

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