Sign up Australia
Proactive Investors - Run By Investors For Investors

Volt Resources cooperates with Chinese graphite company regarding Bunyu offtake

HAIDA Graphite will carry out tests on flake graphite samples from Volt’s Tanzanian project.
The company has already signed two offtake agreements

Volt Resources Ltd (ASX:VRC) is cooperating with one of China’s largest graphite companies which could lead to a further offtake agreement for graphite from the Bunyu project in Tanzania.

The signing of a cooperation agreement will see Volt’s subsidiary Volt Graphite Tanzania (VGT) and HAIDA Graphite exchange relevant information and conduct testing on Bunyu graphite samples.

Both parties are looking to build a working relationship for the future supply and purchase of graphite product from the project.

READ: Volt Resources secures further offtake deal for flake graphite from Tanzanian project

Volt’s chief executive officer Trevor Matthews said: “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.

“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.

“This holds us in very good standing as we target the start-up of stage I production and subsequent large-scale stage II expansion.”

READ: Volt Resources gets ready for stage I development of Tanzania’s largest graphite resource

Volt’s management has been participating in discussions and negotiations with a number of Chinese groups in regards to securing additional binding offtake agreements.

This has seen the company sign a binding agreement for 9,000 tonnes annually from stage I production over five years with major Chinese graphite company Qingdao Tiangshengda Graphite.

It followed a previous binding agreement with US-based graphene company Nano Graphene Inc.

Other discussions advancing well

Further discussions with other potential partners are also advancing well and Volt looks forward to providing further updates on offtake agreements

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

Amended prospectus lodged

Volt has lodged an amended prospectus with the Tanzanian Capital Markets and Securities Authority (CMSA) and the Dar es Salaam Stock Exchange (DSE) regarding a proposed US$40 million note issue.

This followed correspondence from Volt and a meeting with the CMSA in late June after receipt of the CMSA’s initial review of the prospectus.

Document has been updated

The prospectus was also updated to include the recently published stage I feasibility study results and the offtake agreement with Qingdao Tianshengda Graphite.

As it is the first resources-based note to be listed on the DSE, regulators have duly spent time understanding the differences from existing issuances which comprise banks and telecom companies.

Matthews said: “I am pleased to report that our amended prospectus has now been lodged with the relevant authorities in Tanzania.

“We are now moving closer towards the issuance of the prospectus to sophisticated investment groups in key East African financial markets.”

Stage I development

Bunyu’s stage I development is based on a mining and processing plant annual throughput rate of 400,000 tonnes of ore to produce on average 23,700 tonnes of graphite products.

The project is ideally located near critical infrastructure with sealed roads running through the project area and ready access to the deep-water port of Mtwara 140 kilometres away.

View full VRC profile View Profile

Volt Resources Ltd Timeline

Related Articles

February 08 2018
The Gunnison Copper Project is slated for commercial production in the second half of this year
Energy Fuels nudges higher as it outlines opportunities to lift uranium output
March 21 2018
The group is always hunting new sources of alternate feed materials and fee processing arrangements, it said
copper ore
April 10 2018
The AIM-listed junior now sees at least 20 years of operations at the Newfoundland-based copper/gold operation

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use