Highlights:
- Development funding options including the Tanzanian Note Issue approval advancing to secure US$40 million for the Stage 1 development of the Bunyu Graphite Project
- US$1 million in funding secured from a European based high net worth investor
- Riverfort/Yorkville debt facility restructured with maturity date extended to 14 September 2019
- Mr Giacomo (Jack) Fazio appointed Non-Executive Director
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 30 June 2019.
June Quarter Activities Overview
US$40 million Tanzanian Note Issue Update
The Company and its advisor, Exotix Capital, continued to progress the planned Tanzanian Note Issue and listing of the Notes on the Dar es Salaam Stock Exchange (DSE). Volt advanced a number of development funding strategies in parallel which include providing Volt with the options of a Bond Issue and listing on the Stock Exchange of Mauritius (“SEM”) and private bond investment.
During and post quarter end, ongoing in-country discussions and meetings between Volt’s management team and the Tanzanian Government continued to take place, and the Company is confident that the approval process for the Note Issue is nearing the final stages.
Positive progress was also made in respect to the Company’s proposed Bond Issue and listing on the SEM, with a draft prospectus in the final stages of preparation and post quarter end an additional experts report being prepared to meet the information and disclosure requirements of the SEM. Further, discussions and project due diligence processes continue with North America, African and Asia-based institutions via Exotix Capital.
Project Engineering and Construction Contract negotiations with a recognised engineering services firm for the role of Project Management Contractor (PMC) continued with the development of final contract terms and conditions. The contract is planned to be executed by the parties in the near future to coincide with development funding nearing completion.
Tanzanian Mining Exhibition
The CEO and Volt Graphite Tanzania management attended a mining exhibition in the parliament grounds in Tanzania’s capital, Dodoma, over a two day period on May 26 and 27. The exhibition coincided with the Ministry for Minerals annual budget speech to the National Assembly. It provided an opportunity for the Company to present the Company’s Bunyu project and explain graphite mining and processing, product markets and project development activities to the Speaker of the House and members of parliament.
US$1 Million Corporate Funding Secured
In June, the Company secured US$1 million in working capital funding from Mr Lars Bader via the placement of 20,845,714 shares at 2.1c per share raising US$300,000, an 18-month loan facility for US$700,000 and 25,536,000 options with an exercise price of $0.04 per share with an 18- month maturity.
The funding provides flexibility to finalise the Tanzanian Note Offer approval as part of the Bunyu Stage 1 development funding process and assists with the corporate debt restructuring. The support from Mr Bader demonstrates the long-term underlying value in Volt’s Bunyu Project.
The Company also announced during the quarter financial support from two directors, with Mr Kabunga and Mr Hunt advancing $100,000 in short term working capital funding on an unsecured, arm’s length commercial term basis repayable on or before 15 July 2019.
Debt Facility Restructure
Subsequent to the reporting date, the Company advised the maturity date for the loan facility with RiverFort Global Capital and Yorkville Advisors (see ASX announcements dated 22 January and 23 January 2019) had been extended by two months, from 14 July 2019 to 14 September 2019.
The terms of the extension require an amount payable at execution of US$375,000, comprising a loan repayment amount of US$335,106 which reduces the total amount payable at maturity to US$664,894 from US$1 million and an extension fee of US$39,894
Board Changes
Post-quarter end, the Company appointed Mr Giacomo (Jack) Fazio as Non-Executive Director, following the resignation of Mr Alwyn Vorster. Mr Fazio is a highly experienced project, construction and contract/commercial management professional having held senior project management roles with Primero Group Limited, Laing O’Rourke and Forge Group Ltd. His experience ranges from feasibility studies through to engineering, procurement, construction, and commissioning of diverse mining, infrastructure, oil & gas and energy projects.
Change of Registered Office
The Company changed its registered office and principal place of business to Level 25, Suite 10 108 St Georges Terrace Perth WA 6000. Volt’s postal address has also changed to the above address. The Company’s telephone number remains unchanged as +61 (0)8 9486 7788.
Management Commentary
Volt Resources CEO Trevor Matthews said:
“We continue to drive the opportunity to progress bond issues in both Tanzania and Mauritius, which will provide Volt with important funding optionality and access to a larger pool of investors to raise the US$40 million needed to complete the Stage 1 development program at Bunyu.
“While we acknowledge that the process has taken longer than originally forecast, it should be noted that Volt is the first mining company to pursue a DSE and Mauritian debt issue and listing and we are now nearing the final stages of the approval processes in both jurisdictions which is very encouraging.
“With recent progress on corporate funding and the development funding process nearing a conclusion, Volt is very excited to be turning its focus towards the development of this world-class 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