The company has been advised of the grant of the two licences by the Mining Commission of the Ministry of Minerals of Tanzania.
Granting of the licences is a major step forward, as Volt focuses on advancing the project towards stage I production.
This follows the completion of the stage I feasibility study and the finalisation of all required environmental approvals.
“A key milestone”
Volt’s chairman Asimwe Kabunga said, “This is a key milestone for Volt and our shareholders, as we have now effectively received all required primary development approvals.
“Volt has maintained a very transparent and positive dialogue with the Tanzanian authorities throughout the entire approvals process, and I would like to thank the relevant authorities for their support and input towards achieving these key approvals.”
Stage I is based on a mining and processing plant annual throughput rate of 400,000 tonnes to produce on average 23,700 tonnes of graphite products.
The mining licences have been granted subject to three conditions:
Volt has advised that it plans to accept or meet these conditions.
Kabunga said, “The company looks forward to continuing to work with the Tanzanian authorities over the coming months as we near the start-up of operations from our stage I development.”
Volt’s near-term focus is on completion of the proposed US$40 million note Issue, for which an updated prospectus has been lodged with the Tanzanian Capital Markets and Securities Authority.
Following formal receipt of the licences, completion of the note issue and approval by the Volt board, subsidiary Volt Graphite Tanzania Ltd (VGT) will proceed with front end engineering and design work.
This FEED work will be for the initial stage I operations and the ordering of long lead time components.
Planning for stage II
Concurrent with stage I development, VGT plans to undertake the definitive feasibility study on the large-scale stage II expansion at Bunyu.
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.