Volt Resources Ltd (ASX:VRC) has received positive initial feedback for the Bunyu graphite product from its Chinese offtake partner, with the final graphite product test work results expected shortly.
The Tanzanian focused flake graphite development company is focused on the exploration and development of its wholly-owned Bunyu Graphite Project in Tanzania.
Volt’s shares were trading 12% higher intra-day, at $0.028.
The company had submitted graphite samples to its potential Chinese offtake partner, China National Building Materials General Machinery (CNBMGM), to enable testing of the Bunyu graphite product.
Importantly, the recent feedback received from CNBMGM has been positive, with test work indicating the Bunyu product meets all requirements for CNBMGM.
Volt had signed an agreement earlier this year with CNBMGM to provide the company with project engineering and financing support towards the development of the Bunyu Graphite Project.
CNBMGM is one of the world’s largest building materials producers, which can provide Volt with significant leverage into the global expandable graphite market should a binding offtake agreement materialise.
Meanwhile, Volt’s North American-based customer, Nano Graphene Inc has commissioned its Brooklyn-based graphene plant and has commenced production.
Volt had signed a binding offtake agreement with Nano Graphene in March 2017 for a minimum of 5,000 tonnes of flake graphite concentrate over 5 years.
Nano Graphene is in the process of securing supply agreements with a number of end-users including a major semi-conductor producer and an emerging car manufacturer, both of which are planning to utilise Volt’s Bunyu graphite product.