Updated Tanzanian Propectus Lodged & Co-op Agreement signed


Lodgement of an amended prospectus pursuant to the Company’s proposed US$40 million Note Issue and the signing of a strategic cooperation agreement with a major Chinese graphite company.

Tanzanian-focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to provide the below update following the lodgement of an amended prospectus pursuant to the Company’s proposed US$40 million Note Issue and the signing of a strategic cooperation agreement with a major Chinese graphite company.

Amended Tanzanian Note Issue Prospectus Lodged

Volt advises that the amended prospectus for the US$40 million Note Issue was lodged with the Tanzanian Capital Markets and Securities Authority (“CMSA”) and the Dar es Salaam Stock Exchange (“DSE”) on Friday, August 17.

This followed correspondence from Volt and a meeting with the CMSA in late June after receipt of the CMSA’s initial review of the Note prospectus. The prospectus was also updated to include the recently published Stage 1 Feasibility Study results (see ASX release dated 31 July 2018) and the recent binding offtake agreement signed with Qingdao Tianshengda Graphite (see ASX release dated 2 August 2018).

Volt’s management would like to advise that as this is the first resources-based Note to be listed on the DSE, the Regulators have duly spent time understanding the differences from existing issuances which comprise banks and telecom companies. Volt and its advisors are pleased with the discussions and progress to date and remain confident of a successful outcome in respect to the proposed development funding.

Offtake Cooperation Agreement Signed

As previously reported (see ASX release dated 30 June 2018), Volt’s management has been participating in discussions and negotiations with a number of Chinese groups in regards to securing additional binding offtake agreements for the Company’s Bunyu Graphite Project.

As a result of these ongoing discussions, Volt is pleased to announce that its 100%-owned subsidiary – Volt Graphite Tanzania (“VGT”) – has signed a cooperation agreement with one of China’s largest graphite companies, HAIDA Graphite.

Under the agreement, VGT and HAIDA will exchange relevant information and conduct testing on VGT’s graphite product samples, as both parties look to build a working relationship for the future supply and purchase of Bunyu graphite product.

HAIDA has extensive mining, processing and sales experience, producing and supplying a range of graphite products to customers in China and international markets including Japan, Korea, the US and Western Europe.

Further discussions with other potential offtake partners are also advancing well and the Company looks forward to providing further updates on offtake agreements in due course.

Volt’s Chief Executive Officer, Trevor Matthews, commented:

“I am pleased to report that our amended prospectus has now been lodged with the relevant authorities in Tanzania, and we are now moving closer towards the issuance of the prospectus to sophisticated investment groups in key East African financial markets.

“Whilst in the early stages, our cooperation agreement with HAIDA serves as a precursor to the signing of a potential offtake agreement in due course, and we are very pleased to be working with another of the major graphite players in China.

“It is clear that Volt is continuing to receive very positive feedback from a number of parties regarding demand for Bunyu’s coarse flake graphite product which holds us in very good standing as we target the start-up of Stage 1 production and subsequent large-scale Stage 2 expansion.”

For and on behalf of Volt Resources Limited

Trevor Matthews
Chief Executive Officer


For further information please contact:

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