Volt Resources Ltd (ASX:VRC) has raised the target amount of $1.251 million after completing the underwriting and placement of all shortfall shares from a recent rights issue.
A further $638,055 has been raised from the issue of more than 63.805 million shares following the underwriting and placement of the shortfall shares.
Funds will be used to progress the recently approved Stock Exchange of Mauritius (SEM) listed note issue.
They will also assist in continuing the process to obtain approvals for the Dar es Salaam Stock Exchange (DSE) Note Issue as well as for general corporate and working capital.
SEM note listing approved
Volt Graphite Tanzania Plc (VGT) is undertaking a private placement of notes that will be listed on the Development and Enterprise Market (DEM) of the SEM.
On December 27, 2019, the SEM listing committee approved the listing of VGT’s notes on the DEM.
This allows the company and its advisors to finalise planning for the VGT Note Issue roadshow and begin the note offer process.
The offer is scheduled to begin this quarter with further details to be made available in the near future.
Substantial shareholder lifts stake
As a result of the shortfall, substantial shareholder Kabunga Holdings Pty Ltd has lifted its stake in Volt to 12.69%.
Kabunga now holds 220,632,298 shares after being issued almost 37.75 million shares at 1 cent each on January 7.
This followed the investor’s participation in the non-renounceable rights issue at the same price resulting in the issue of more than 13 million shares on December 18.
In November 2019 Kabunga was issued in excess of 8.333 million shares at 1.2 cents each in a placement which was approved at the company’s 2019 annual general meeting.
The placement followed a share purchase plan which resulted in Kabunga being issued 1.25 million shares at 1.2 cents each in August 2019.
Kabunga Holdings’ purchases have seen Volt’s non-executive chairman Asimwe Kabunga increase his indirect holding in the company to 220,632,298 as he is a beneficiary of the substantial investor.
Graphite focus
Volt is focused on the exploration and development of its wholly-owned Bunyu Graphite Project in Tanzania.
In 2018 a feasibility study was completed into the stage I development of the project based on a mining and processing plant annual throughput rate of 400,000 tonnes of ore to produce on average 23,700 tonnes of graphite products.
A key objective of the stage I development is to establish infrastructure and market position in support of the development of the significantly larger stage II expansion project.
