VOLT SECURES US$1 MILLION CORPORATE FUNDING

Highlights

• US$1 million investment by a European based high net worth investor as follows:
  • US$300,000 share placement completed at A$0.021
  • US$700,000 loan facility
  • Issue of 25,536,000 options exercisable at A$0.04 for potential gross proceeds of US$700,000
    
• Funds provide working capital flexibility to complete the US$40 million Bunyu Stage 1 development funding process

Tanzanian-focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to advise it has secured US$1 million in working capital funding via the placement of 20,845,714 shares at 2.1c per share raising US$300,000 and a US$700,000 loan facility entered into with Mr Lars Bader.

The loan key terms are summarised below. Mr Bader will also be issued 25,536,000 options with an exercise price of $0.04 per share with an 18 month maturity. The 20,845,714 shares and 25,536,000 options will be issued under the Company’s available Listing Rule 7.1 placement capacity.

Exotix Capital acted as Structuring and Placement Advisor in arranging the funding package. As previously reported (31 May 2019), Volt continues to simultaneously advance several funding strategies to secure the US$40 million required to complete the Stage 1 development of the Bunyu Graphite Project in Tanzania.

Current strategies being pursued include a Note issue on the Dar es Salaam (“DSE”) in Tanzania and a similar Bond issue on the Stock Exchange of Mauritius (“SEM”).

Head of Natural Resources at Exotix Capital, Andrew Moorfield, noted

“as one of the leading global graphite development juniors, Volt accessing sophisticated global investors reinforces its long-term growth potential.”

Volt’s CEO Trevor Matthews commented,

“This latest funding support from a sophisticated European based investor shows confidence in the Company’s ability to not only close the development funding, but also demonstrates the long-term underlying value in Volt’s Bunyu Project.

“With this interim funding now secured, we have the requisite funding flexibility to finalise the Tanzanian Note Offer approval as part of the development funding process. I would like to acknowledge the excellent work of Exotix Capital in facilitating the working capital funding.

“We continue to progress the Mauritian bond issue approval with the Stock Exchange of Mauritius and advance discussions with an African development bank and North American and African institutional investors.

“We are looking forward to finalising this funding process and shifting our focus towards advancing development at our world-class Bunyu Project.”

Key terms of the loan facility are as follows:

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