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
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