Volt Resources Ltd (ASX:VRC) has had its two mining licence applications for the Bunyu Graphite Project in Tanzania recommended for approval within the online Cadastral system of the country’s Ministry of Minerals.
These applications cover the footprint for both the stage I and II developments at the project.
While the recommendation represents an encouraging step forward, Volt advises that “this status change does not constitute final approval and receipt” of the all-important licences.
Volt recently received the Environmental Impact Assessment (EIA) Certificate, representing the final pre-requisite for granting of the mining licences and one of the final remaining major milestones in terms of government permitting.
The feasibility study for Bunyu’s stage I development was completed in July 2018 based on a mining and processing plant annual throughput of 400,000 tonnes to produce on average 23,700 tonnes of graphite products.
A key objective of stage I is to establish infrastructure and market position in support of the development of the significantly larger stage II expansion project.
The Bunyu 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.
US$40 million note issue update
Volt is also advancing the US$40 million note issue for which an updated prospectus was lodged with the Tanzanian Capital Markets and Securities Authority (CMSE) and the Dar es Salaam Stock Exchange last month.
The company said that correspondence with the CMSA had been ongoing and positive, and it was preparing to lodge a further update of the prospectus and associated documents.
“Volt is satisfied with the recent progress in relation to regulatory approval of the prospectus with a conclusion expected in the near future,” the company advised in a statement.