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.
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.
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.