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Volt Resources secures 6-month loan facility as it progresses Tanzanian note issue

The company aims to raise US$40 million to help fund the stage I development of its graphite project.
Volt Resources secures 6-month loan facility as it progresses Tanzanian note issue
Volt's Bunyu Graphite Project is in Tanzania

Volt Resources Ltd (ASX:VRC) has secured a 6-month loan facility, with a further 6-month extension option, providing $1.3 million in funding.

The funds will give flexibility to the flake graphite developer as it progresses listing approval from the Tanzanian Capital Markets and Securities Authority for the issue of a note prospectus.

The loan facility will not be dilutionary to existing shareholders as no equity will be issued during the initial 6-month loan period.

READ: Volt Resources receives final Dar es Salaam Stock Exchange approval for Tanzanian note issue

The loan was secured through a charge over Volt’s assets and Volt non-executive chairman Asimwe Kabunga’s shareholding in the company.

No security was provided over Volt’s Tanzanian assets due to the need to keep them unsecured for the Bunyu project development funding.

There is will also be no change in Kabunga’s shareholding in Volt.

READ: Volt Resources expects approval in the near future for Tanzanian note issue

Volt is a graphite exploration and development company focused on its wholly-owned Bunyu Graphite Project in Tanzania.

Bunyu is near critical infrastructure with sealed roads running through the project area and about 140 kilometres from the Mtwara deep-water port.

The stage one development of Bunyu outlined in Volt’s 2018 feasibility study is based on a mining and processing plant annual throughput rate of 400,000 tonnes of ore.

This is expected to produce an average of 23,700 tonnes of graphite products a year.

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