Company News

QUARTERLY ACTIVITIES REPORT TO 31 MARCH 2020

QUARTERLY ACTIVITIES REPORT TO 31 MARCH 2020

Highlights:

  • The Mauritian Funding Process Commenced
  • Excellent Initial Testwork Results Highlight Significant Potential to Improve Bunyu Graphite Economics
  • Rights Issue Funding Completed

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 2020.

March Quarter Activities Overview

Bunyu Stage 1 Development Funding Update

Volt’s 100%-owned subsidiary, Volt Graphite Tanzania Plc (VGT), is progressing with the raising of US$15,000,000 through the issue of Senior Notes – with a greenshoe option of up to US$15,000,000 – to raise up to US$30,000,000 by way of private placing on the Development and Enterprise Market (DEM) of the Stock Exchange of Mauritius (SEM).

The Company and its advisor, Alphier Capital (formerly Exotix Capital) along with local brokers, commenced investor meetings from 27 January 2020 as part of a roadshow to market the Notes to sophisticated investors.

The Mauritian Note offer has been extended and is planned to close 30 June 2020. The first day of trading of the Notes on the Stock Exchange of Mauritius DEM is scheduled for Monday, 6 July 2020.

Due to the recent and widespread impact of the COVID-19 pandemic on financial markets and the associated delays as institutions and investment groups change their work arrangements leading to delays in conducting due diligence and the deferral of investment decisions, the Company is providing potential investors with additional time to complete these processes.

A number of alternative funding proposals were presented to the Company as result of the engagement with numerous investment groups as part of the Note offer marketing process and these are currently being progressed in parallel with the Note Offer process.

The purpose of progressing with the Mauritian Note offer and alternative funding proposals is to enable the Company to:

(a) commence the development of the Stage 1 Bunyu Graphite Project in Southern Tanzania including the construction of a 400,000tpa concentration plant and associated infrastructure; and

(b) fund the resettlement costs of people currently farming and/or living within the project development area.

Excellent Testwork Results

During the March quarter the Company commenced the first stage of a testwork program on graphite ore from the Bunyu Graphite Project in Tanzania. The testwork program was undertaken by highly respected technical group, American Energy Technologies Co. (“AETC”) which is headquartered and operates research and laboratory facilities in Chicago, Illinois.

AETC testwork program summary

In January 2020, Volt commissioned AETC to undertake a testwork program using a representative sample from drilling completed as part of the Stage 1 Feasibility Study at the Company’s Bunyu Graphite Project.

A graphite product from the Bunyu ore sample was prepared and analysed for certain physical, chemical and processing properties to provide information for its suitability for several value-added graphite market applications including as anode feedstock for Li-ion battery cells.

The representative sample of ore was obtained from a composite sample produced from a metallurgical drilling program undertaken as part of the Stage 1 Feasibility Study (FS).

For further information regarding the drilling program and composite sample refer to the ASX announcement Excellent Bunyu Testwork Results – Additional Information dated 20 April 2020.

In the testwork conducted, concentrate grade recovery and flake preservation had an emphasis on the use of a heavy molecular oil method (AETC’s frother is referred to as AMO). This method offers an alternative to the industry standard reagent, kerosene.

The success of this method is based on a synergistic use of high shear mixing and AMO. By the end of the primary beneficiation process, aa 86.6 wt. % TGC concentrate was produced with recovery of at least 68.5 wt. % of graphite available for beneficiation.

This is an effective method to produce flake graphite concentration for the purpose of subsequent down-stream processing and characterisation for a range of applications.

Producers that use the industry standard method, which includes kerosene as an additive and utilizes large paddles as an agitator of material, typically require at least a few more polishing grinds, the application of an attrition mill, and a greater number of cleaner circuits to achieve a similar result, and this would be more complex in a laboratory application where the focus was to produce flake graphite cost effectively for subsequent downstream processing testwork.

The testwork undertaken included both physical and chemical characterisation, and Industry standard analytical techniques have been employed.

The recovery of 68.5 wt.% of the total available concentrate was deemed appropriate by the consulting laboratory, extracting what they believe was a fully representative sample of flake graphite product sample for thermal purification by the induction furnace into the secondary processed grade.

Below is a table with the Stage 1 product size distribution compared with the product distribution from the AETC graphite product from the aforementioned testwork program.

There is a substantial increase in the percentage of high priced +30# and +50# graphite flake with a consequent reduction mainly in the lower priced fine graphite flake. With further testwork and analysis, this could have major economic benefits for both the Stage 1 and Stage 2 Bunyu project.

AETC testwork on Bunyu Graphite

If through further testwork the benefits in flake size distribution continue, the next step would be to consider the incorporation into the Stage 1 feasibility study and flowsheet design. The operating and capital
cost changes to the current Stage 1 plant are expected to be minimal and more than offset by the substantial increase in sales revenue.

The above results are from the first phase of the AETC program and the Company looks forward to releasing further results as they become available.

The testwork program constituted the main mining exploration activity undertaken by the Company during the March quarter. Total expenditure on exploration activities for the quarter was $384k.

There was no mining production and development activities undertaken in the March quarter.

Non-Renounceable Rights Issue Funding Completed

The Company successfully raised the target amount of $1.251 million following the underwriting and placement of all shortfall shares from the Rights Issue (see ASX Announcement dated 17 December 2019).

The Company received a further $638,055 from the issue of 63,805,449 shares following the underwriting and placement of the shortfall shares in January 2020.

Funds raised were used to progress the DEM listed Note issue, discussions with other development funding sources and for general corporate and working capital.

Mining Tenements

The schedule of interest in mining tenements as at 31 March 2020 follows.
All tenement within Tanzania are held by Volt Graphite Tanzania Plc, a wholly owned subsidiary of Volt Resources Ltd.

The Company did not acquire or dispose of any tenements during the quarter. The Company is not a party to any farm-in or farm-out agreements.

Cash Position and Mid-Term Funding

The Company finished the 31 March 2020 quarter with $27k in cash and $46k in receivables.

While the Company progresses its fund raising activities for the Stage 1 development, it is currently advancing with proposals to raise a smaller amount of funds for corporate and working capital purposes.

Early in the March quarter the Company reduced its Perth staff to the CEO role with most activities being outsourced and a number of other corporate services ceased to further reduce expenditure. Reductions in Tanzania personnel were also undertaken during the quarter.

Related Party Payments

During the quarter $5,000 was paid in respect of Non-Executive Directors fees.

Management Commentary

Volt Resources CEO Trevor Matthews said:

“The focus in the March quarter moved to the formal start of the Company’s development funding initiatives with the Mauritian Note offer commencing combined with a marketing roadshow. This in turn led a number of introductions to alternative funding providers with which discussions continue.

“Our Stage 1 funding initiatives continue to advance, even in light of the current COVID-19 pandemic which is causing delays in the process, and I look forward to providing updates on our Mauritian Note Offer and other funding sources in due course.”

This announcement was authorised for release by the Board of Volt Resources Ltd.


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
UPDATE ON MAURITIAN NOTE OFFER PROCESS

UPDATE ON MAURITIAN NOTE OFFER PROCESS

Tanzanian-focused flake graphite developer Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) wishes to advise that the closing date of the Company’s Mauritian Note Offer (“Note Offer”) has been extended.

The Note Offer opened on January 27 and is now planned to close by 30 June 2020. The first day of trading of the Notes on the Stock Exchange of Mauritius DEM is expected to be 6 July 2020.

As previously advised (see ASX release dated 28 January 2020), Volt’s wholly owned subsidiary Volt Graphite Tanzania Plc (“VGT”), is aiming to raise US$15,000,000 through the issue of Senior Notes – with a greenshoe option of up to US$15,000,000 – to raise a total of US$30,000,000 by way of private placing on the Development and Enterprise Market (“DEM”) of the Stock Exchange of Mauritius (“SEM”).

Due to the recent and widespread impact of the COVID-19 pandemic on financial markets and the associated delays as institutions and investment groups change their work arrangements leading to delays in conducting due diligence and the deferral of investment decisions, the Company is providing potential investors with additional time to complete these processes.

A number of alternative funding proposals were also presented to the Company as result of the engagement with numerous investment groups as part of the Note offer marketing process and these are currently being progressed in parallel with the Note Offer process.

Authorised by:

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
EXCELLENT BUNYU TESTWORK RESULTS – ADDITIONAL INFORMATION

EXCELLENT BUNYU TESTWORK RESULTS – ADDITIONAL INFORMATION

Key points include:

  • Scope to significantly improve sales revenue from Bunyu graphite products – initial testwork shows significant increase in the percentage of high priced (+30# and +50#) graphite flake and a reduction mainly in the lower priced fine graphite flake.
  • Other key results from the first phase of the testwork program include:
    • Production of a 99.95% thermally purified graphite product suitable for a number of end uses including battery anode material feedstock.
    • ICP analysis which identified very low boron levels in the thermally purified graphite which makes the Bunyu product suitable for nuclear industry components and as a feedstock in the manufacture of synthetic diamonds.
    • Excellent preliminary BET surface area, Scott volume and tap density measurements which point to the Bunyu graphite product being a good quality feedstock for Li-ion battery cell anode material.
  • Volt continues to advance its Mauritian Note Offer to raise up to US$30M and alternative finance sources to fund Stage 1 development of Bunyu Graphite Project.

Tanzanian-focused flake graphite developer Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to provide the excellent results from the first stage of a testwork program on graphite ore from the Bunyu Graphite Project in Tanzania. The testwork program was undertaken by highly respected technical group, American Energy Technologies Co. (“AETC”) which is headquartered and operates research and laboratory facilities in Chicago, Illinois.

AETC testwork program summary

In January 2020, Volt commissioned AETC to undertake a testwork program using a representative sample from drilling completed as part of the Stage 1 Feasibility Study 1 at the Company’s Bunyu Graphite Project. A graphite product from the Bunyu ore sample was prepared and analysed for certain physical, chemical and processing properties to provide information for its suitability for several value-added graphite market applications including as anode feedstock for Li-ion battery cells.

The representative sample of ore was obtained from a composite sample produced from a metallurgical drilling program undertaken as part of the Stage 1 Feasibility Study (FS). Further information regarding the drilling program and composite sample are included below.

Volt’s Bunyu Graphite Stage 1 Project will produce on average 23,700tpa of natural flake graphite product at up to 96% TGC. Product size, grade distribution and average sales price reported in the Stage 1 Feasibility Study are shown in the following table.

Comminution Testwork

The samples supplied were screened to -3.35mm and this was confirmed with a light top -size crush at the US Laboratory prior to grinding. Wet grinding was undertaken in a ball mill in 4.5lbs batches for 5 minutes at 70% solids. Polishing mill utilised 0.5” diameter alumina balls at 20 minutes for 50 wt. % solids as the operating conditions.

Flotation Testwork

A Westpro Machinery Inc. (Vernon, BC, Canada) continuous mineral beneficiation system by froth flotation was employed to separate graphite from the bulk of the host rock. The model FL3, having a 3 ft3 capacity per cell, constructed in a four-cell arrangement was used. The flotation cell has a range of operating controls and common operating parameters to other testwork programs. Also, a smaller 3 Litre cell was used for preliminary testing of froth formation (shown below)

Froth Flotation Cell Testwork

Graphite Froth Flotation Cell Testwork

In the testwork conducted, concentrate grade recovery and flake preservation had an emphasis on the use of a heavy molecular oil method (AETC’s frother is referred to as AMO). This method offers an alternative to the industry standard reagent, kerosene. The success of this method is based on a synergistic use of high shear mixing and AMO.

By the end of the primary beneficiation process, aa 86.6 wt. % TGC concentrate was produced with recovery of at least 68.5 wt. % of graphite available for beneficiation. This is an effective method to produce flake graphite concentration for the purpose of subsequent down-stream processing and characterisation for a range of applications.

Producers that use the industry standard method, which includes kerosene as an additive and utilizes large paddles as an agitator of material, typically require at least a few more polishing grinds, the application of an attrition mill, and a greater number of cleaner circuits to achieve a similar result, and this would be more complex in a laboratory application where the focus was to produce flake graphite cost effectively for subsequent downstream processing testwork.

The testwork undertaken included both physical and chemical characterisation, and Industry standard analytical techniques have been employed.

Process flowsheet of upstream beneficiation of Bunyu flake

The recovery of 68.5 wt.% of the total available concentrate was deemed appropriate by the consulting laboratory, extracting what they believe was as a fully representative sample of flake graphite product sample for thermal purification by the induction furnace into the secondary processed grade.

Below is a table with the Stage 1 product size distribution compared with the product distribution from the AETC graphite product from the aforementioned testwork program.

There is a substantial increase in the percentage of high priced +30# and +50# graphite flake with a consequent reduction mainly in the lower priced fine graphite flake. With further testwork and analysis, this could have major economic benefits for both the Stage 1 and Stage 2 Bunyu project.

AETC Testwork results

If through further testwork the benefits in flake size distribution continue, the next step would be to consider the incorporation into the Stage 1 feasibility study and flowsheet design. The operating and capital cost changes to the current Stage 1 plant are expected to be minimal and more than offset by the substantial increase in sales revenue.

The above results are from the first phase of the AETC program and the Company looks forward to releasing further results as they become available.

Electron microscope image of +30# graphite flake

Scanning electron microscope image of +30# graphite flake from Bunyu screened product

FS Metallurgical Drilling Program

As part of the 2017/18 Stage 1 FS program of work, an infill drilling program was undertaken at Bunyu 1 to increase the geological understanding of the ore body and the level of resource confidence and, using this additional information, to refine the planned mining schedule and the Stage 1 pits.

As part of this scope of work diamond drill holes were drilled in areas of known mineralisation to map out additional geological, geotechnical and metallurgical information.

Bunyu drill locations map

The diamond drill hole collar details and hole depths that contributed to the metallurgical composite sample are detailed in the following table.

Bunyu metallurgical drill hole collar details

2018 FS Drill Core Composite Details

Cut ½ and ¼ drill core samples were delivered to ALS Metallurgy, at their Balcatta facility during January 2018. The drill core was crushed to -3.35mm and the following composites were formed, which were homogenised and the head assays determined.

Bunyu Composite details

From the Master Composite a 67kg of sample was made available for this program of testwork and dispatched from ALS Metallurgy in December 2019.

Management commentary

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

“We are delighted with these initial testwork results provided by AETC which is further confirmation to the previous testwork programs during the PFS and FS stages of project study & development that Bunyu’s flake distribution is suitable for supply to traditional markets and for use in new high demand applications such as battery anode end use markets.

“Given these results there is an opportunity to make improvements to the project economics outlined in the Stage 1 Feasibility Study for Bunyu, with further details on these changes to be provided in due course.

Our Stage 1 funding initiatives continue to advance, even in light of the current COVID-19 pandemic which is causing delays in the process, and I look forward to providing updates on our Mauritian Note Offer and other funding sources in due course.”

Authorised by:

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
EXCELLENT BUNYU TESTWORK RESULTS

EXCELLENT BUNYU TESTWORK RESULTS

Key points include:

  • Scope to significantly improve sales revenue from Bunyu graphite products – initial testwork shows significant increase in the percentage of high priced (+30# and +50#) graphite flake and reduction mainly in the lower priced fine graphite flake
  • Other key results from the first phase of the testwork program include:
    • Production of a 99.95% thermally purified graphite product suitable for a number of end uses including battery anode material feedstock
    • ICP analysis which identified very low Boron levels in the thermally purified graphite which makes the Bunyu product suitable for nuclear industry components and as a feedstock in the manufacture of synthetic diamonds
    • Excellent preliminary BET, Scott volume and tap density measures which point to the Bunyu graphite product being a good quality feedstock for Li-ion battery cell anode material
  • Volt continues to advance its Mauritian Note Offer to raise up to US$30M and alternative finance sources to fund Stage 1 development of Bunyu Graphite Project

Tanzanian-focused flake graphite developer Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased provide the excellent results from the first stage of a testwork program on graphite ore from the Bunyu Graphite Project in Tanzania. The testwork program was undertaken by highly respected technical group, American Energy Technologies Company (“AETC”) which is headquartered and operates research and laboratory facilities in Chicago, Illinois.

AETC testwork program summary

In January 2020 Volt commissioned AETC to undertake a testwork program using a representative sample of ore from drilling completed as part of the Stage 1 Feasibility Study at the Company’s Bunyu Graphite Project. The scope was to prepare a graphite product from the Bunyu ore sample and to analyse the product for certain physical, chemical and processing properties to provide information for its suitability for several graphite markets including as anode feedstock for Li-ion cells.

Volt’s Bunyu Graphite Stage 1 Project will produce on average 23,700tpa of natural flake graphite product at up to 96% TGC. Product size, grade distribution and average sales price reported in the Stage 1 Feasibility Study is shown in the following table.

Size (µm)Size (#)% Distribution% TGCPrice US$/tonnne
+500+321952,530
+300+5011931,990
+180+8027921,077
+150+1001592985
-150-1004696704
Total1001,195*

*Weighted average price based on all product sizes

Below is a table with the Stage 1 product size distribution compared with the product distribution from the AETC graphite product from the testwork program.

There is a substantial increase in the percentage of high priced +30# and +50# graphite flake with a consequent reduction mainly in the lower priced fine graphite flake. This will have major economic benefits for both the Stage 1 and Stage 2 Bunyu project.

Size (µm) Size (#)% Distribution
Stage 1 FS
% Distribution
AETC Testwork
+500+3017
+300+501132
+180+802725
+150+100158
-150-1004628
Total100100

The above initial results require further analysis and testwork. If through further testwork the benefits in flake size distribution continue and there is sufficient time available, the next steps would be to incorporate the changes into the Stage 1 flowsheet design and a change in the processing reagents. The operating and capital cost changes to the current Stage 1 plant are expected to be minimal and more than offset by the substantial increase in sales revenue.

The above results are from the first phase of the AETC program and the Company looks forward to releasing further testwork results as they become available.

Scanning electron microscope image of +30# graphite flake from Bunyu screened product

Management commentary

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

“We are delighted with these initial testwork results provided by AETC which confirm that Bunyu’s flake distribution is suitable for supply to traditional markets and for use in new high demand applications such as battery anode end markets.

“Given these latest results we expect to be able to make significant improvements to the project economics outlined in the Stage 1 Feasibility Study for Bunyu, with further details on these changes to be provided in due course.

“Our Stage 1 funding initiatives continue to advance, even in light of the current COVID-19 crisis which is causing delays in the process, and I look forward to providing updates on our Mauritian Note Offer and other funding sources in due course.”

This announcement is authorised for release by Volt’s Chief Executive Officer, Trevor Matthews.

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
UPDATE ON MAURITIAN NOTE OFFER PROCESS

UPDATE ON MAURITIAN NOTE OFFER PROCESS

Tanzanian-focused flake graphite developer Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) wishes to advise that the closing date of the Company’s Mauritian Note Offer (“Note Offer”) has been extended to allow investors sufficient time to finalise their due diligence and investment approval processes.

The Note Offer opened on January 27 and is now planned to close by 24 April 2020. The first day of trading of the Notes on the Stock Exchange of Mauritius DEM is expected to be 30 April 2020.

As previously advised (see ASX release dated 28 January 2020), Volt’s wholly owned subsidiary Volt Graphite Tanzania Plc (“VGT”), is aiming to raise US$15,000,000 through the issue of Senior Notes – with a greenshoe option of up to US$15,000,000 – to raise a total of US$30,000,000 by way of private placing on the Development and Enterprise Market (“DEM”) of the Stock Exchange of Mauritius (“SEM”).

Following an extensive three-week roadshow arranged by Alphier Capital, which included meeting with investors in Mauritius, Kenya, South Africa and the Middle East, interested groups are now completing due diligence prior to making a final investment decision.

A number of alternative funding proposals were also presented to the Company during the roadshow and these are currently being progressed in parallel with the completion of the Note Offer process.

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

“We are pleased with the positive feedback received to date from potential investors and given this is the first offer of securities by a mining company on the Mauritian Stock Exchange we are happy to extend the Note Offer period to provide more time for investors to assess the opportunity and complete their investment decision making processes.

“I look forward to providing further updates in the near-term as our funding alternatives are advanced.”

This announcement is authorised for release by Volt’s Chief Executive Officer, Trevor Matthews.

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 DECEMBER 31 2019

QUARTERLY ACTIVITIES REPORT TO DECEMBER 31 2019

Highlights:

  • Stock Exchange of Mauritius approves Volt’s Note Listing on the Development and Enterprise Market
  • Successful Non-Renounceable Rights Issue raises A$1.25 million
  • Binding offtake agreement with Tianshengda extended by mutual agreement

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 December 31, 2019.

December Quarter Activities Overview

Bunyu Stage 1 Development Funding Update

During the quarter, the Company and its advisors Alphier Capital (“Alphier” and formerly Exotix Capital) made significant progress with respect to the Stock Exchange of Mauritius (“SEM”) Note Issue and listing, which is a key component of its funding strategy to raise US$40 million for the Stage 1 development of Bunyu Graphite Project.

As previously advised, Volt’s 100% owned Tanzanian subsidiary Volt Graphite Tanzania Plc (“VGT”) is undertaking a private placement of Notes that will be listed on the Development and Enterprise Market (“DEM”) of the SEM. The Note offer is seeking to raise US$15,000,000 through the issue of Senior Notes – with a greenshoe option of up to US$15,000,000 – to raise up to US$30,000,000.

In December, VGT’s application for the listing of Notes was approved by the Stock Exchange of Mauritius listing executive committee.

With the approval finalised, at quarter end the Company and its advisors commenced planning for VGT’s Note Issue roadshow. Subsequent to the quarter end, the Note Offer opened on 27 January 2020 with Volt’s CEO, Trevor Matthews, and Alphier Capital Managing Partner, Andrew Moorfield, commencing the Note Offer roadshow investor meetings.

The Mauritian Note offer is planned to close 20 February 2020. The first day of trading of the Notes on the Stock Exchange of Mauritius DEM is scheduled for Wednesday, 26 February 2020.

While the DEM Note Offer is currently the Stage 1 development funding priority, during the quarter the Company continued to progress discussions with government officials regarding VGT’s proposed Tanzanian Note issue and listing on the Dar es Salaam Stock Exchange. Further, other development funding discussions and project due diligence processes continue with North America, Middle East and African based institutions via Alphier Capital.

Non-Renounceable Rights Issue Raises A$1.25m

During the quarter, the Company undertook a 1 for 12.9 non-renounceable Rights Issue (Rights Issue) of ordinary shares, which closed in December, raising A$1.251 million following the underwriting and placement of all shortfall shares (see ASX Announcement dated 17 December 2019). Subsequent to the reporting date, (see ASX Announcement dated 7 January 2020), Volt received a further $638,055 from the issue of 63,805,449 shares following the underwriting and placement of the shortfall shares. Volt’s Chairman, Asimwe Kabunga, strongly supported the capital raising, contributing in excess of $0.5 million of the total amount raised. Funds raised will be used to progress the DEM listed Note issue, discussions with other development funding sources and for general corporate and working capital.

Binding Offtake Agreement Extended

The binding sales agreement (“Agreement”) between VGT and Qingdao Tianshengda Graphite Co. Ltd. (“Tianshengda”) for 9,000 tonnes per annum of Bunyu Graphite Product over five years was executed on 1 August 2018.

The Agreement is conditional upon 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 within defined milestone dates. The milestone dates were due to expire in the coming quarter.

The Company and Tianshengda recently executed an amendment to the Agreement extending these milestone dates by a further 2 years. This is a strong show of support and confidence by our offtake partner, Tianshengda, and reflects not only the quality of Volt’s graphite products but the expected strong increase in flake graphite demand in coming years from EV and grid energy storage, flame retardant building materials and other new industrial applications.

The Tianshangda Offtake Agreement is one of two binding offtake agreements entered into by VGT and there is a further offtake agreement in draft that is to be executed once development funding is obtained. The combined offtake quantities under the existing and planned offtake agreements has completed the sale of product forecast to be available from Stage 1 production.

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.

Cash Position and Mid-Term Funding

The Company finished the 31 December 2019 quarter with $120k in cash and subsequent to the quarter end received a further $638,055. While the Company progresses its Mauritian Note Issue to raise funds for the Stage 1 development, the Company is reviewing proposals to raise a smaller amount of funds for corporate and working capital purposes following the completion of its Mauritian Note Issue and other development funding discussions.

Management Commentary

Volt Resources CEO Trevor Matthews said:

“The overarching focus this quarter was advancing the Company’s development funding initiatives, and the approval from the Stock Exchange of Mauritius represents a significant step towards securing Stage 1 funding.

“With VGT’s application for the listing of Notes approved and the Note offer open, the Company and its advisors are now proceeding with VGT’s Note Issue roadshow.

“Furthermore, the $1.25 million secured via the completed Rights Issue provides the Company with the funding required to progress the Companies development funding initiatives. “The milestones achieved this quarter have heightened the Company’s confidence that this funding process is nearing a conclusion, and we look forward to providing further updates in due course.”

This announcement is authorised for release by Volt’s Chief Executive Officer, Trevor Matthews.

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
MAURITIAN FUNDING PROCESS COMMENCES

MAURITIAN FUNDING PROCESS COMMENCES

Tanzanian-focused flake graphite developer Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to advise that its Mauritian funding process is now underway, with the Company’s Note Offer officially opening Monday 27 January 2020.

Volt’s 100%-owned subsidiary, Volt Graphite Tanzania Plc (VGT), is progressing with the raising of US$15,000,000 through the issue of Senior Notes – with a greenshoe option of up to US$15,000,000 – to raise up to US$30,000,000 by way of private placing on the Development and Enterprise Market (DEM) of the Stock Exchange of Mauritius (SEM).

The Mauritian Note offer is planned to close 20 February 2020. The first day of trading of the Notes on the Stock Exchange of Mauritius DEM is scheduled for Wednesday, 26 February 2020.

The Company and its advisor, Alphier Capital (formerly Exotix Capital) along with local brokers, commenced investor meetings from 27 January 2020 as part of a roadshow to market the Notes to sophisticated investors.

The purpose of issuing the Notes and listing on the DEM is to provide funds to enable the Company to:

(a) commence the development of the Stage 1 Bunyu Graphite Project in Southern Tanzania including the construction of a 400,000tpa concentration plant and associated infrastructure; and

(b) fund the resettlement costs of people currently farming and/or living within the project development area.

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

“We are pleased to move quickly following listing approval for this Mauritian Note issue, and our advisers have worked hard to establish a solid network of potential investors.

“As we have previously noted, Volt has generated significant interest as the first resources company to undertake a Note Issuance on the SEM, and we are now focused on advancing this funding process in the near-term.

“The Mauritian Stock Exchange offers strong access to a broad pool of investors spanning Mauritius, Europe, the Middle East, North America and Africa, and we look forward to closely working with these investors over the next couple of weeks.

Key terms and conditions of the Note Issue are as follows:

Issuer Volt Graphite Tanzania Plc
Nature of Instruments Senior Notes
Tenor 5 Years
Date of Issue 25 February 2020
Interest Rate 9.5%
Interest Payment Date Semi-annual in arrears on 14 April and 14 October each year
First day of trading 26 February 2020
Note Issue Price US$1.00
Registrar, calculation and transfer agent NMB Bank Plc
Ohio/Ali Hassan Mwinyi Road
PO Box 9213
Dar es Salaam
Tanzania
Noteholders’ Representative GFin Corporate Services Ltd
Level 6, GFin Tower
42 Hotel Street
Cybercity
Ebene 72201
Mauritius
Security Interest The Notes are senior to all outstanding obligations at the time of issue, including shareholder equity and are not subordinated to any other debt. The Notes are not secured but shall be the senior debt of the Issuer
Minimum subscription: The minimum amount to be raised is USD6,000,000. Should the Company not raise this minimum amount the Company shall withdraw its application to list the Securities on the DEM and shall refund all collected monies to Subscribing Investors.

This announcement is authorised for release by Volt’s Chief Executive Officer, Trevor Matthews.

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
RIGHTS ISSUE FUNDING COMPLETED

RIGHTS ISSUE FUNDING COMPLETED

Tanzanian-focused flake graphite developer Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to advise that it has successfully raised the target amount of A$1.251 million following the underwriting and placement of all shortfall shares from the recently closed Rights Issue (see ASX Announcement dated 17 December 2019).

The Company has received a further $638,055 from the issue of 63,805,449 shares following the underwriting and placement of the shortfall shares.

Funds raised will be used to progress the recently approved Stock Exchange of Mauritius (SEM) listed Note issue, continuation of the process to obtain approvals for the Dar es Salaam Stock Exchange (DSE) Note Issue and for general corporate and working capital.

Volt’s Board extends its thanks to all participating shareholders and investors for their support.

Volt Receives SEM Approval for Note Listing

As previously advised, Volt Graphite Tanzania Plc (“VGT”) is undertaking a private placement of Notes that will be listed on the Development and Enterprise Market (“DEM”) of the SEM.

On 27 December 2019, the SEM listing committee approved the listing of VGT’s Notes on the DEM, which allows the Company and its advisors to finalise planning for VGT’s Note Issue roadshow and commence the Note offer process.

The Note Offer is scheduled to commence in Q1 2020 with further details of the Offer to be made available in the near future.

This announcement is authorised for release by Volt’s Chief Executive Officer, Trevor Matthews.

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 RECEIVES SEM APPROVAL FOR NOTE LISTING

VOLT RECEIVES SEM APPROVAL FOR NOTE LISTING

  • Stock Exchange of Mauritius (SEM) approves Volt’s Note Listing on the Development and Enterprise Market (DEM)
  • SEM investor roadshow and fund raising to commence in Q1 2020 – funding to be deployed towards Stage 1 development of Bunyu Graphite Project
  • Volt continues to advance Dar es Salaam (DSE) Note Issue and Listing with ongoing discussions being held with Tanzanian Government Officials

Tanzanian-focused flake graphite developer Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to advise that Volt Graphite Tanzania Plc’s (“VGT”) application for the listing of Notes has been approved by the Stock Exchange of Mauritius (“SEM”) listing committee.

VGT is undertaking a private placement of Notes that will be listed on the Development and Enterprise Market (“DEM”) of the SEM. This approval allows the Company and its advisors to finalise planning for VGT’s Note Issue roadshow. Further details on the approved Admission Document (Prospectus) and Note Issue details will be announced in the near future.

The Company can also report that progress continues to be made in respect to VGT’s proposed Tanzanian Note issue and listing on the Dar es Salaam Stock Exchange (“DSE”). Albeit that progress has been slow, recent discussions and further planned meetings with senior Tanzanian Government officials on matters to be agreed prior to a Note Issue approval provide some confidence in the process and the Company looks forward to providing further updates in due course.

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

“With the green light now received from the SEM we are looking forward to finalising our Note Issue roadshow planning and the commencement of the fund raising process. During this listing approval process we have worked closely with our advisors to establish a solid network of potential investors having generated significant interest as the first resources company to undertake a Note Issuance on the SEM.

“The Mauritian Stock Exchange offers strong access to a broad pool of investors spanning Mauritius, Europe, the Middle East and North America and I look forward to providing shareholders with further updates as this initial round of fund raising gets underway.”

This announcement is authorised for release by Volt’s Chief Executive Officer, Trevor Matthews.

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