Sign up Australia
Proactive Investors - Run By Investors For Investors

Volt Resources increases share purchase plan to meet demand

The board has elected to increase the SPP limit due to demand by over 50%.
blocks the together read funding
The Bunyu Graphite Project was renamed from the Namangale Graphite Project

Volt Resources (ASX:VRC) has elected to increase its share purchase plan (SPP) limit from $1.5 million after receiving over $2.3 million in applications.

The heavily oversubscribed SPP closed 25 October 2017 and will see $2.33 million worth of shares issued at $0.021.

Funds raised will be used to fund the completion of the feasibility study for the Stage 1 development of the Bunyu Graphite Project located in Tanzania.

Recently, the company engaged Exotix Capital to undertake a Tanzanian Bond issue to raise up to US$30 million in structured debt to fund the Stage 1 development.

READ NOW: Volt Resources appoints Exotix Capital to raise up to US$30 million

If successful, the proposed bond issue financing will ensure that project development funding will be undertaken with minimal equity dilution.

Use of funds

The funds raised under the SPP will used for objectives including:

- Complete the feasibility study for the Stage 1 Bunyu graphite project development;
- Continue development funding negotiations, obtain project development approvals, advance offtake and cooperation agreements into binding agreements, enter into engineering and construction agreements and other material contracts for the Stage 1 development; and
- Support in-country costs associated with the project.

Off-take agreements in place

Volt continues to advance discussions with China National Building Materials General Machinery (CNBMGM) and Guangxing Electrical Materials (GEM).

Product samples were sent to both CNBMGM and GEM to enable independent testing on the Bunyu Graphite product.

Positive initial product feedback was received from CNBMGM and final results from the test work program are expected to be received in the coming weeks.

READ NOW: Volt Resources' shares rise on positive feedback for Bunyu graphite product

Additional samples were also arranged for China-based AOYU Graphite.

Assuming the product test work is successful, then offtake agreements totalling 15,000 to 20,000 tonnes per annum could be confirmed during Q4 2017.

View full VRC profile View Profile

Volt Resources Ltd Timeline

Related Articles

maps of the Torrens Copper Project in South Australia
March 20 2018
The company's shares have increased six-fold from their low of 0.6 cents in 2017.
Graphite drill core samples at Caula Vanadium-Graphite Project
September 17 2018
One of the highest-grade graphite deposits in the world with grades up to 28% total graphitic carbon.
September 26 2018
Mt Gilmore Project and the Cobalt Ridge cobalt prospect are priority focuses for the company which will present at the RIU Resources Investor Roadshow in Melbourne tomorrow.

© 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