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