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
VOLT ADVANCES GRAPHITE OFFTAKE AGREEMENTS

VOLT ADVANCES GRAPHITE OFFTAKE AGREEMENTS


Highlights

  • Meetings held this month with key existing and potential new offtake partners in China – strong demand for flake graphite, particularly coarse flake for expansion market
  • Existing offtake partners advise they are prepared to sign binding offtake agreements for Bunyu Graphite

Tanzanian-focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to provide the following update on the Company graphite offtake agreement strategy.

Members of Volt’s management team recently visited China to advance discussions on binding offtake agreements in line with the Company’s progress in development funding, Stage 1 feasibility study, development approvals and construction related contracts for the Company’s flagship Bunyu Graphite Project in Tanzania.

Volt is pleased to advise that a number of meetings have been held with CNBM General Technology (formerly known as CNBM General Machinery), Qingdao Guangxing Electronics Materials (GEM), Qingdao Tianshengda Group and two new groups, Haida Graphite and Qingdao Baixing Graphite to progress offtake agreements or commence exchange of project information and product samples for longer term supply arrangement discussions.

Feedback received to date has 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 processing strategy to maximise the production of coarse flake graphite.

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

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 STRIVES TO BE LEADING NATURAL FLAKE GRAPHITE PRODUCER

VOLT RESOURCES STRIVES TO BE LEADING NATURAL FLAKE GRAPHITE PRODUCER

Volt Resources Ltd (ASX:VRC) CEO Trevor Matthews details progress and aspirations for the Bunyu Graphite Project in Tanzania, as demand and supply for the commodity shifts, sending up prices.

Speaking about a potential note issue on the Dar es Salaam Stock Exchange, Matthews says, “we’re the first miner to proceed with this particular funding pathway… we’re certainly fairly confident, and so are our advisors, that we’ll be successful in raising the US$40 million we need. [That] combined with the completion of mining license approvals and also environmental approvals means that we can be on track to commence construction of our 20,000 tonne per annum stage one project in the current quarter.”

 

Posted by Volt Resources in Company News
BUNYU GRAPHITE PROJECT ON TRACK

BUNYU GRAPHITE PROJECT ON TRACK

Key Points:

  • Draft prospectus for US$40 million Note Issue now under review by the Tanzanian Capital Markets and Securities Authority and the Dar es Salaam Stock Exchange
  • Environmental approvals process progressing well – site verification visit and technical review completed
  • Resettlement Action Plan developed and compensation approvals nearing completion

Tanzanian-focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to provide a progress update on the Company’s flagship Bunyu Graphite Project in Tanzania.

US$40 million Tanzanian Note Prospectus Progress

As advised on 27 March, the Company lodged the draft prospectus for the US$40 million Note Issue with the Tanzanian Capital Markets and Securities Authority (“CSMA”) and the Dar es Salaam Stock Exchange (“DES”). Both regulators are currently conducting their review process.

There is no prescribed timeframe for the completion of the review process. However, based on previous note issues the initial review generally takes 3 weeks to receive feedback from the regulators. Therefore, Volt expects to receive feedback from the regulators later this month.

Following this, the Company and its advisors will make any requested changes and re-submit the prospectus to the regulators for final approval, following which the prospectus will be distributed to investors in East Africa to commence the fund raising process.

Bunyu Project Update

Volt can advise that the environmental approvals continue to progress in line with expectations, with 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.

As usual with environmental assessment processes, further information for inclusion in the Environmental Social Impact Statement (“ESIS”) has been requested arising from these review processes. The Company is currently preparing the additional information and will submit the amended ESIS to the NEMC within the next week. Subject to meeting the requirements of the NEMC, the amended document and NEMC recommendations will be sent to the Department of Environment whereby the Minister will provide their decision within 30 days.

Furthermore, Volt advises 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 has been approved by the Government Chief Valuer and is nearing approval completion at the district and regional level. 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 are appropriately compensated. The drafting of the implementation plan for the RAP is underway.

The Mining Licence (“ML”) Approval is also progressing on track and is currently awaiting the appointment of the Minerals Commission, the body which approves ML applications, and the receipt of the Environmental Certificate from the environmental approval process.

Volt would also like to advise that the Stage 1 Feasibility Study (“FS”) is also due to be completed this quarter. The FS completion timing has been adjusted due to RC sample export delays in Tanzania during January and February this year. This, in turn, has moved the delivery of the Stage 1 Resource and Reserve calculations, mine production schedule and associated 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).

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

1 Refer to Volt’s ASX announcement titled “Pre-feasibility Study Completed” dated 15 December 2016. The Company confirms that it is not aware of any new information or data that materially affects the information included in this document and that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed.

 

Posted by Volt Resources in Company News
PROSPECTUS LODGED FOR US$40 MILLION TANZANIAN NOTE ISSUE

PROSPECTUS LODGED FOR US$40 MILLION TANZANIAN NOTE ISSUE

Tanzanian-focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to advise that the draft prospectus for the US$40 million Note Issue1 will be lodged with the Tanzanian Capital Markets and Securities Authority (CMSA) and the Dar es Salaam Stock Exchange (DES) today.

Following lodgement, the prospectus will be reviewed by the CMSA and the DSE.

Once approved for distribution, the prospectus will be printed and forwarded to potential investors in Tanzania, Uganda and Kenya.

Volt is undertaking the Note Issue in partnership with highly experienced, specialist investment bank Exotix Capital (“Exotix”). As previously advised (see ASX announcement dated 26 February 2018), Orbit Securities (“Orbit”) has been appointed as Co-Lead Advisor and Placing Broker for the Tanzanian Note Issue alongside Exotix.

Funds raised from the completion of the Note Issue will be deployed towards the Stage 1 development of the Bunyu Graphite Project, targeting the production of ca. 20,000tpa of high-quality graphite products.

Further update on the funding process will be provided to shareholders in due course.

For and on behalf of Volt Resources Limited

Trevor Matthews
Chief Executive Officer

 

1 Previously referred to as a Bond Issue, the term Note is preferred in the East African debt markets. The Note Issue has identical terms to those previously disclosed as a Bond Issue. Refer ASX announcement 14 December 2017.


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
EDISON RESEARCH – RECHARGED AND READY FOR A TRANSFORMATIONAL YEAR

EDISON RESEARCH – RECHARGED AND READY FOR A TRANSFORMATIONAL YEAR

2018 should be a pivotal year in Volt’s history, potentially seeing it migrate from graphite developer to producer.

However, a number of milestones remain, including offtake agreements on commercial terms (although term sheets have been signed with certain offtakers), mining licence approval and of course the financing of Bunyu Phase 1.

With Bunyu Phase 1 intended to be largely debt funded via a Tanzanian bond issue, and short-term equity funding completed for current work programmes, we see a lower risk of future dilution until Bunyu enters production.

Read Full Report

Posted by Volt Resources in Company News
SUCCESSFUL INVESTOR SITE VISIT AT BUNYU GRAPHITE PROJECT

SUCCESSFUL INVESTOR SITE VISIT AT BUNYU GRAPHITE PROJECT

Tanzanian-focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to advise that a site visit to the Bunyu Graphite Project was recently held for a number of potential bond investors.

Volt is currently in the process of undertaking a US$40 million Tanzanian Bond Issue in partnership with highly experienced, specialist investment bank Exotix Capital (“Exotix”). Funds raised from the completion of the Bond Issue will be deployed towards the Stage 1 development of the Bunyu Graphite Project, targeting the production of ca. 20,000tpa of high-quality graphite products.

Volt has the largest mineral resource in Tanzania and is aiming to be one of the top three global suppliers of natural graphite by 2020.

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 (“Orbit”) 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. Exotix Head of Natural Resources, Andrew Moorfield, discussed the planned bond issue process and key terms.

“The Volt site tour confirmed that East African investor appetite for USD linked Tanzanian listed Fixed Income instruments is robust,” Mr. Moorfield commented. “The Volt growth story and management strength is reflected in solid investor feedback.”

Proposed Stage 1 pit location

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

 

Orbit has been appointed as Co-Lead Advisor and Placing Broker for the Tanzanian Bond Issue alongside Exotix. International law firm Clyde & Co. Tanzania has been appointed as Legal Counsel and Ernst and Young Tanzania as Reporting Accountant for the preparation of the Bond Prospectus.

Volt is preparing to lodge the draft prospectus for the bond issue with the Tanzanian regulators within the next week. The Capital Markets and Securities Authority (CMSA) and the Dar es Salaam Stock Exchange (DSE) are required to approve the prospectus prior to distribution to potential bond investors in Tanzania, Uganda and Kenya.

Nachingwea ariport

Figure 2: Visitors arrive at Nachingwea ariport, which is approximately 50km north of the Bunyu 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

Released through Sam Burns, Six Degrees Investor Relations, M: 0400 164 067

Posted by Volt Resources in Company News
LODGEMENT OF MINING LICENCE APPLICATIONS

LODGEMENT OF MINING LICENCE APPLICATIONS

Highlights

  • Mining Licence Applications (MLA’s) cover both Stages 1 and 2 of its Bunyu Graphite Project in Tanzania
  • Significant milestone and represents the final key approval required for proposed Stage 1 development of flagship Bunyu Project
  • Latest development follows the submission of the Environmental and Social Impact Statement (ESIS) in January
  • Bunyu Project has the largest JORC Mineral Resource in Tanzania measuring 461Mt at 4.9% Total Graphite Carbon (TGC)

 


 

Tanzanian-focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to advise that it has lodged its Mining Licence Applications (“MLA’s”) with the Minister for Minerals of Tanzania (the “Minister”) covering the Company’s flagship Bunyu Graphite Project.

Importantly, the MLA’s 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 and will be based on the PreFeasibility Study metrics of 3.8Mtpa of ore feed to produce 170,000tpa of graphite product.

As the footprint of the Stage 1 Bunyu Project also accommodates the Stage 2 development – with both development stages set to utilise the same mine infrastructure – two MLA’s have been lodged with the Minister. The total area covered by the MLA’s is approximately 18 km², with single ML’s limited to 10km² in size.

As previously advised (see ASX announcement dated 23 January 2018), the lodgement of the MLA’s follows the submission of the Environmental and Social Impact Statement, both of which are key approvals for Volt’s near-term development plans at Bunyu.

Following assessment and approval by the National Environment Management Council (“NEMC”), Volt will be issued with its Environmental Certificate for the project.

In addition, Volt will update shareholders on the progress of the Exotix Capital US$40m bond issue and the finalisation of the Stage 1 Bunyu Feasibility Study in the near future.

 

Volt’s Chief Executive Officer, Trevor Matthews commented:

“We are continuing to make significant strides towards the planned Stage 1 Development of our Bunyu Graphite Project this year, with the submission of the Mining Licence Applications another key component of this strategy.

“Coupled with the recent submission of the ESIS and the partnering with Exotix on the project funding for Bunyu, our focus remains squarely on our shareholder value proposition with the near-term development of what will be a globally significant graphite asset.

 

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

Released through Sam Burns, Six Degrees Investor Relations, M: 0400 164 067

Posted by Volt Resources in Company News