Proactive Investors - Run By Investors For Investors

Volt Resources proceeds with issue of US$40 million in structured debt to fund Bunyu Graphite Project

The Tanzanian bond issue is to fund the Stage 1 development of Bunyu.
Picture of mine site
US$40 million funding arrangement assists in derisking Bunyu Graphite Project

Volt Resources Ltd (ASX:VRC) is proceeding with the issue of US$40 million in structured debt funding to assist in the development of the Bunyu Graphite Project in Tanzania.

The company engaged Exotix Capital to undertake a Tanzanian Bond issue to raise the required funding for the development of stage 1 of the Bunyu project.

Following recent meetings with investment groups in Tanzania, Uganda and Kenya, Exotix has recommended Volt proceed with a formal bond prospectus.

It has also advised Volt to list the bonds on the Dar es Salaam Stock Exchange (DSE) in Tanzania.

This builds on an option funding agreement negotiated in early December.

READ: Volt Resources raises further funds to fast-track Bunyu Graphite Project

Funding provides project development working capital of circa US$31 million

Funding arrangement will allow net project development and working capital of circa US$31 million.

It is estimated that the facility interest and bond maturity payments can be serviced by projected project cash flows.

Importantly, the US$40 million debt sizing allows meaningful participation from Tanzanian and Ugandan pension funds combined with other investment groups seeking income investments.

Increased size of bond issue provides financial flexibility

Trevor Matthews, chief executive, said: “We are buoyed by the level of support received from the Exotix bond roadshow.

“The appetite for investing in local resource projects in this market is evident, and the increased sizing of the bond issue provides us with added financial flexibility as Bunyu is developed over the next 12 months.”

View full VRC profile View Profile

Volt Resources Ltd Timeline

Related Articles

Massive sulphides at TopTung’s new Alotta Nickel-Sulphide Project in Quebec, Canada
November 01 2018
The company’s shareholders have approved an acquisition as it advances a new corporate strategy.
mining camp
November 14 2018
Last month, Excelsior revealed a huge boost to the project, a US$75 million project financing package
The Toral project
October 31 2018
Since June, the company has achieved an increase in the Toral project's inferred resource estimate, completion of the Phase 1 RC drilling programme and commencement of a Phase 2 diamond infill drill programme, a successful re-logging exercise of historic core to provide valuable additional data and sustained progress on the preparation of the initial scoping study

© 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