Company News

BOARDROOM MEDIA INTERVIEW WITH CEO

BOARDROOM MEDIA INTERVIEW WITH CEO

Tanzanian focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to provide investors with an opportunity to listen to an interview with Chief Executive Officer Trevor Matthews on Boardroom Media.

The interview provides an update on key funding initiatives undertaken by the Company in Q4 2017 and on progress at Volt’s flagship Bunyu Graphite Project in Tanzania.

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
VOLT TO PURSUE US$30M TANZANIAN BOND ISSUE

VOLT TO PURSUE US$30M TANZANIAN BOND ISSUE

Volt appoints experienced, well-qualified investment banking firm Exotix Capital to raise up to US$30 million via Tanzanian Bond Issue

  • Proposed funding to be deployed early 2018 to complete Stage 1 development of Bunyu Graphite Project targeting production of 20,000tpa of graphite products by late 2018
  • Exotix is a market leader in structured finance packages for natural resource projects in African economies – funds sourced from African institutions, family offices and regional credit funds
  • Analysts expect soaring demand for graphite as a key component of lithium-ion batteries in electric cars, in addition to other key applications such as fire retardant building materials
  • Volt’s Bunyu project is Tanzania’s largest graphite mineral resource

Tanzanian-focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to advise that it has engaged Exotix Capital to undertake a Tanzanian Bond issue to raise up to US$30 million in structured debt to fund the Stage 1 development of the Company’s flagship Bunyu Graphite Project in Tanzania. If successful, the proposed bond financing will ensure that project development funding will be undertaken with minimal equity dilution.

Exotix will act as structuring, financial and placement advisor and will leverage its significant East African networks to complete the proposed Issue, with a focus on the Tanzanian, Kenyan and Ugandan capital markets, respectively.

Volt will continue to consider other funding proposals it is currently negotiating for the Stage 1 development of the Bunyu Project to ensure that momentum moving towards production by year-end 2018 is maintained.

Tanzania and Mozambique are home to Africa’s largest deposits of graphite, a mineral increasingly in demand because of its variety of uses, including as a fire retardant in building materials and for use in batteries for powering electric vehicles. The manufacture of lithium-ion batteries used in electric vehicles requires nine times more graphite than lithium.1 By 2020, analysts estimate the demand for flake graphite will exceed 500,000 tonnes per annum, largely due to an approximate 400% increase in battery graphite feedstock demand from 2016.2

Volt’s Banyu Graphite Project is the largest JORC mineral resource deposit in Tanzania and can produce graphite suitable for both battery production and building material uses.

As part of the proposed bond raising process, Volt will, upon completion, have the bonds listed on the Dar es Salaam Stock Exchange (“DSE”) in Tanzania. The estimated timeframe to complete a DSE listing is 8-12 weeks.

 

Volt’s Chairman, Asimwe Kabunga, commented:

Asimwe KabungaVolt is pleased to be partnering with the team at Exotix over the coming months as we pursue an in-country bond issue in Tanzania to fund the initial Stage 1 development of our Bunyu graphite project.

Exotix brings to the table an extensive network of East African investors and a comprehensive strategy to access these local parties who have a strong appetite for large-scale resource projects such as Bunyu.

We look forward to continuing to provide shareholders with further funding and operational updates in due course.

 

Exotix’s CEO, Duncan Wales, commented:

We are happy to be working on such an important project with Volt to support Tanzania’s growth as a major producer and exporter of natural graphite amid increasing demand for the mineral.

 

 

About Exotix Capital

Since 1999, Exotix has been enabling international investors to access the most dynamic and complex financial markets and economies in the world. Exotix specialises in equity and fixed-income markets, and investment banking, throughout developing economies in Africa, Central, South and Southeast Asia, emerging Europe, the Middle East, Latin America and the Caribbean. During the past year, Exotix has been named Best Boutique Investment Bank in Africa by Global Finance, Best Frontier Markets Investment Banking Team in the UK by Capital Finance International, and Best Broker in Tanzania and Nigeria by EMEA Finance. For more information about Exotix, go to https://www.exotix.com

For and on behalf of Volt Resources Limited

Trevor Matthews
Chief Executive Officer

 


1 http://northerngraphite.com/lithium-ion-batteries
2 http://benchmarkminerals.com/graphite-demand-from-lithium-ion-batteries-to-more-than-treble-in-4-years

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
2017 ANNUAL GENERAL MEETING PRESENTATION

2017 ANNUAL GENERAL MEETING PRESENTATION

[Click on any thumbnail image above to enlarge the slides]

Posted by Volt Resources in Company News
BUNYU GRAPHITE TEST WORK AND OFFTAKE PARTNER UPDATE

BUNYU GRAPHITE TEST WORK AND OFFTAKE PARTNER UPDATE

  • Positive initial product feedback received from Chinese offtake partner– final test work results on Bunyu graphite product expected shortly
  • North American offtake customer, Nano Graphene Inc., ramps up graphene production and confirms premium quality of Bunyu graphite product
  • Flake graphite market experiencing strong price growth

Tanzanian focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to provide the following update on its Bunyu graphite offtake partner product test work program and on recent developments made by Volt’s North American customer.

 

Chinese Partner Provides Positive Feedback on Bunyu Graphite

As previously advised, Volt has submitted graphite samples to its potential Chinese offtake partner, China National Building Materials General Machinery (“CNBMGM”), to enable independent testing to be undertaken on the quality and suitability of the Bunyu graphite product.

Volt is pleased to advise that recent feedback received from CNBMGM has been very positive, with test work indicating the Bunyu product meets all requirements for CNBMGM.

Volt entered into a non-binding Cooperation Agreement with CNBMGM in June 2017 which outlined the framework for CNBMGM to become an offtake partner and to provide Volt with project engineering/construction and financing support towards the development of the Bunyu Graphite Project in Tanzania.

CNBMGM is one of the world’s largest building materials producers, consumers and sellers and would provide Volt with significant leverage into the global expandable graphite market should a binding offtake agreement materialise.

The Cooperation Agreement is an important precursor to the signing of a Binding Offtake Agreement with CNBMGM, with the agreement providing for the potential offtake of 10,000-15,000tpa of graphite concentrate from Stage 1 production.

Final results from the CNBMGM test work program are expected to be received in the coming weeks, and Volt will provide updates on additional offtake opportunities and test work programs conducted by other offtake partners in due course.

 

North American Offtake Customer Update

Volt is also pleased to advise that its North American-based customer, Nano Graphene Inc. (“NGI”), has recently achieved a number of key operational and corporate developments. Volt signed a binding offtake agreement with NGI in March 2017 for a minimum of 5,000 tonnes of flake graphite concentrate over 5 years.

NGI recently advised that its Brooklyn-based plant has been commissioned and is now fully operational. Graphene production has commenced and will be steadily ramped up over coming months.

In addition, NGI is in the process of securing supply agreements with a number of recognisable end-users including a major semiconductor producer and an emerging car manufacturer, both of which are planned to utilise Volt’s Bunyu graphite product.

Initial test work undertaken by NGI confirmed that Volt’s Bunyu graphite product is amongst the highest quality graphite flakes NGI had tested to date. As a result, both NGI and Volt are in discussions to broaden their existing partnership to potentially incorporate downstream, value-added refining of Volt’s graphite utilising NGI’s proprietary technology. The Company will provide further updates on these discussions in due course.

 

Graphite Market Update

Volt is also encouraged by the current positive market conditions in the graphite sector, with prices rising as a result of increasing demand for flake graphite in battery anode and building material applications combined with China’s closure of graphite mines arising from environmental issues.

According to industry analyst Benchmark Data, these pressures recently pushed flake graphite prices to their highest point in over two years, with the Benchmark Flake Graphite Index climbing 16% during August continuing a series of monthly price rises since May this year. It is expected that further near-term price increases will continue as limitations on production and demand increases continue.

Furthermore, Volt also notes the increased domestic large flake consumption from China’s expandable graphite sector. As a result, the FOB price of +80 mesh material (94-95% C) from China increased by 19% to an average of $1,000/tonne, with some sales representing a month-on-month increase of up to 30%.

 

Volt’s Chief Executive Officer, Trevor Matthews commented:

Trevor Matthews“Our relationship with CNBMGM continues to progress very well and although still in the early stages we are excited about the prospect of potentially partnering with one of the world’s largest building materials suppliers.

“The fact that Volt’s Bunyu graphite product continues to be validated as premium quality is highly encouraging and we are now working hard to materialise a number of these offtake opportunities in the near-term.

“We are also highly encouraged by the bullish conditions currently being experienced within the global graphite market, in particular, the tightening of supply and increased demand for large flake graphite in China. Graphite is forecast to remain in short supply for the foreseeable future, providing highly conducive conditions to rapidly advance both key operational and funding milestones this year.”

 

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
VOLT OPERATIONAL UPDATE

VOLT OPERATIONAL UPDATE

Solid progress made with Environmental Impact Assessment – Mining Licence Application well advanced

  • Discussions progressing with two potential Chinese offtake customers
  • Testwork of Bunyu product underway
  • Development funding negotiations progressing with potential financiers
  • Bunyu Project expected to be in production within 12 to 18 months

Tanzanian focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) provides the following update in relation to a number of key corporate and operational developments.

TANZANIA BUNYU GRAPHITE PROJECT UPDATE

Environmental and Social Impact Assessment (ESIA) and Mining Licence Application

Volt is making significant progress in Tanzania, with the ESIA report for the Bunyu Graphite Project expected to be finalised within the next few weeks and lodged with the Minister of Environment.

The completion of this process is a key step towards submission of the Mining Licence Application for Stage 1 production at the Bunyu Project. Volt expects the Mining Licence Application to be lodged before calendar year end.

CORPORATE DEVELOPMENTS

Agreements with Chinese Groups Progressing

Volt confirms positive discussions are progressing with China National Building Materials General Machinery (CNBMGM: see ASX Announcement “Cooperation agreement with China’s largest building materials group” dated 16 June 2017) and Guangxing Electrical Materials (GEM: ASX Announcement “Offtake agreement with major graphite distributor” dated 23 June 2017).

 Flotation Optimisation Testwork

Figure 1: Flotation Optimisation Testwork currently in progress at Xinhai Laboratory, Yantai, China

Product samples have been sent to both groups to enable independent testing on the Bunyu graphite product.

Additional samples are also being arranged for Volt’s other off-take partners, including AOYU Graphite Group. Assuming the product testwork is successful, then offtake agreements totalling 15,000 – 20,000 tonnes per annum could be confirmed in the fourth quarter.

Furthermore, Volt is undertaking process flowsheet testwork in conjunction with Battery Limits and its partner Shandong Xinhai Mining Technology and Equipment Inc in China to optimise the processing and grade/recovery for graphite products.

This testwork builds on the knowledge gained from graphite market end-users about their product requirements and is being incorporated into the Bunyu project flowsheet design.

Project Development Funding Update

Management continues to progress project development funding discussions with potential financiers in the Middle East and with other financial institutions globally. CEO Trevor Matthews visited Dubai and Muscat in late July as part of this process, and the Company looks forward to providing further updates on this process in due course.

 

Chief Executive Officer, Trevor Matthews commented:

Trevor Matthews“Volt is fast-tracking the Stage 1 Development of our Bunyu Graphite Project, with a pathway now in place to have the project in production within the next 12-18 months.

“Product testing is well underway and we are advancing with our Chinese partners in a cooperative manner. Our aim is to materialise these relationships into binding offtake agreements in the vicinity of 15,00020,000tpa, underpinning the Stage 1 Development of Bunyu.

“The Company looks forward to providing further updates on both corporate and operational progress in the near-term.”

 

For and on behalf of Volt Resources Limited

Trevor Matthews
Chief Executive Officer

 


FOR PERSONAL USE ONLY
For further information please contact:

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

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

Posted by Volt Resources in Company News
VOLT CORPORATE UPDATE

VOLT CORPORATE UPDATE

Tanzanian focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) advises that it has changed the name of its operating subsidiary in Tanzania to Volt Graphite Tanzania Limited (“VGT”) from Nachi Resources Limited. The decision was made to ensure a clear relationship between VGT and its parent company Volt and to eliminate any confusion with other companies operating in Tanzania.

Furthermore, it is important to reiterate this is purely a name change and does not change VGT’s assets or financial position. In addition, with immediate effect, Volt’s flagship project will now be referred to as the Bunyu Graphite Project and no longer the Namangale Graphite Project.

Importantly, Volt has to date experienced no material adverse impact following recent legislative changes to the mining legislation in Tanzania, and the Company expects to provide further updates on corporate and operational progress shortly.

 

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
POSITIVE TESTWORK RESULTS FOR BUNYU EXPANDABLE GRAPHITE

POSITIVE TESTWORK RESULTS FOR BUNYU EXPANDABLE GRAPHITE

HIGHLIGHTS

  • Testwork on Bunyu North concentrate highlighted its suitability for producing expandable graphite
  • Enhances the scalability and commercial viability of the entire Bunyu deposit as a primary expandable graphite supplier
  • Excellent expansion results for fine flake and powder

 

INTRODUCTION

Volt Resources Limited (ASX: VRC), (“Volt” or the “Company”) is pleased to report that ongoing testwork on Bunyu North graphite concentrate by the German metallurgical laboratory, which previously reviewed Bunyu South1 samples, confirms its suitability for making expandable graphite for a wide range of downstream applications. This is timely as it follows on from the four recent offtake and cooperation agreements signed with Chinese groups which are primarily focused on expandable graphite1.

POSITIVE TESTWORK SUPPORTS RECENT OFFTAKE AGREEMENTS

Inaugural testwork undertaken on Bunyu North graphite concentrate by the German metallurgical laboratory, which previously tested Bunyu South samples2, confirmed its suitability for producing expandable graphite for a wide variety of applications including flame retardant building material, graphite foil and flame retardant textiles which require finer expandable flake and powder graphite.

This outcome is very positive for Volt, as it means the mine plan can be optimised to source ore from any part of the project mineral resource to meet customer demand for expandable graphite. Demand for expandable graphite is increasing significantly, primarily for it’s non toxic flame retardant qualities and coupled with the reduction in supply from Chinese mines, this is creating an increase in graphite prices.

Testwork results

The German metallurgical laboratory performed a range of tests on the Bunyu North graphite concentrate samples under two different scenarios: [A] standard tests using the most economic and efficient process to produce expandable graphite; and [B] repeats of the same process with hydrated zinc sulphate added. The results follow:

Test [A]: Expansion volume after cold treatment and medium retention time

 

Flake size > 500 µm > 300 µm > 180 µm > 106 µm > 75 µm < 75µm
> 35 mesh > 50 mesh > 80 mesh > 150 mesh > 200 mesh < 200#
Room Temp 2 cm³/g 2 cm³/g 2 cm³/g 3 cm³/g 3 cm³/g 3 cm³/g
800 °C 370 cm³/g 300 cm³/g 250cm³/g 170cm³/g 110cm³/g 70cm³/g
1000 °C 430 cm³/g 430 cm³/g 330 cm³/g 230 cm³/g 150 cm³/g 75cm³/g

 

Key findings from test [A] highlighted:

  • The sample was highly suitable to produce expandable graphite with a large expansion volume;
  • No calcium carbonate was detected which is crucially important for many applications but especially in the refractory industry;
  • Compared with rival samples from China, the expandability results for Volt’s flake are superior; and
  • Overall, test [A] results demonstrate that flake graphite from Bunyu North can produce high quality expandable graphite for multiple downstream applications.

For Test [B], the addition of a small amount of hydrated zinc sulphate materially increased the expansion of finer flake and powder sizes, as shown below:

Test [B]: Expansion volume after cold treatment and medium retention time (with zinc sulphate added)

 

Flake size > 500 µm > 300 µm > 180 µm > 106 µm > 75 µm < 75µm
> 35 mesh > 50 mesh > 80 mesh > 150 mesh > 200 mesh < 200#
Room Temp 2 cm³/g 2 cm³/g 2 cm³/g 4 cm³/g 4 cm³/g 5 cm³/g
800 °C 390 cm³/g 310 cm³/g 320cm³/g 315cm³/g 210cm³/g
1000 °C 450 cm³/g 420 cm³/g 420 cm³/g 320 cm³/g 240 cm³/g 170cm³/g

 

The key findings from test [B] highlighted:

  • Expansion of expandable graphite started at 200°C;
  • Medium/fine sized flakes (>106µm) and powders have a materially larger expansion volume than expandable graphite without the addition of zinc sulphate as an ancillary intercalation reagent;
  • Fine flake and powder with a flake size <75µm from Bunyu North achieved much higher average expansion rates (170cm³/g) then comparable rival samples that originated in China (average 40-46cm³/g); and
  • Due to its high expandability when zinc sulphate is used, the fine flake and powder from Bunyu North can be used in a wide range of downstream applications including – flame retarding for textiles (self-extinguishing carpets/underlays, suits for firefighters), artificial leather for briefcases and other fire protection uses where smooth surfaces are important.

 

Chief Executive Officer, Trevor Matthews commented:

Trevor Matthews“Confirmation that Bunyu North graphite concentrate is suitable for a wide array of expandable graphite applications is timely, given the recent offtake and cooperation agreements signed by Volt. These results provide Volt’s metallurgists and engineers with a more flexible platform to efficiently optimise the most economic development and operation plans for Stage 1 and Stage 2 production across the entire Bunyu deposit.

Conclusion

The Board is pleased with the encouraging metallurgical results for Bunyu North graphite concentrate and its high suitability for making expandable graphite. This will enable Volt’s team to prepare a highly efficient and versatile development plan that factors in the entire Bunyu deposit for delivering graphite concentrate suitable to meet all client requirements.

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

Peter Nesveda – Corporate Affairs, Australian & International Investor Relations Consultant
Tel: +61 3 9504 8420


1 Refer to Volt’s ASX announcements “Cooperation Agreement with Leading Chinese Graphite Group” 22 May 2017, “Cooperation Agreement with CNBM” 16 June 2017, “Offtake Agreement with Major Graphite Distributor” 23 June 2017, “Offtake Agreement Fills Stage 1 Capacity” 17 July 2017.

2 Refer to Volt’s ASX Announcement “Bunyu concentrate suitable for production of commercial grade expandable graphite” – 19 January 2017

Posted by Volt Resources in Company News