Tanzanian-focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to advise that a site visit to the Bunyu Graphite Project was recently held for a number of potential bond investors.
Volt is currently in the process of undertaking a US$40 million Tanzanian Bond Issue in partnership with highly experienced, specialist investment bank Exotix Capital (“Exotix”). Funds raised from the completion of the Bond Issue will be deployed towards the Stage 1 development of the Bunyu Graphite Project, targeting the production of ca. 20,000tpa of high-quality graphite products.
Volt has the largest mineral resource in Tanzania and is aiming to be one of the top three global suppliers of natural graphite by 2020.
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 (“Orbit”) 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. Exotix Head of Natural Resources, Andrew Moorfield, discussed the planned bond issue process and key terms.
“The Volt site tour confirmed that East African investor appetite for USD linked Tanzanian listed Fixed Income instruments is robust,” Mr. Moorfield commented. “The Volt growth story and management strength is reflected in solid investor feedback.”
Figure 1: Visitors and Volt staff and management at the proposed Stage 1 pit location
Orbit has been appointed as Co-Lead Advisor and Placing Broker for the Tanzanian Bond Issue alongside Exotix. International law firm Clyde & Co. Tanzania has been appointed as Legal Counsel and Ernst and Young Tanzania as Reporting Accountant for the preparation of the Bond Prospectus.
Volt is preparing to lodge the draft prospectus for the bond issue with the Tanzanian regulators within the next week. The Capital Markets and Securities Authority (CMSA) and the Dar es Salaam Stock Exchange (DSE) are required to approve the prospectus prior to distribution to potential bond investors in Tanzania, Uganda and Kenya.
Figure 2: Visitors arrive at Nachingwea ariport, which is approximately 50km north of the Bunyu 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
Released through Sam Burns, Six Degrees Investor Relations, M: 0400 164 067