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.
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.”
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.