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Volt Resources leverages funding optionality for stage-one Bunyu Graphite Project development

Proactive Investors Monday, 29 July 2019
Volt Resources Ltd (ASX:VRC) has continued to advance funding options for stage-one development of its Bunyu Graphite Project during the quarter ended June 2019. The company progressed the planned Tanzanian note issue and listing of the notes on the Dar es Salaam stock exchange (DSE), with a draft prospectus in final stages of preparation. Ongoing in-country discussions and meetings between Volt and the Tanzanian Government continue, with Volt confident that approval for the note issue is nearing the final stages. READ: Volt Resources’ share purchase plan to raise at least $1.1 million for debt facility restructure Volt chief executive officer Trevor Matthews said the company continued to progress bond issues in both Tanzania and Mauritius. “[This] will provide Volt with important funding optionality and access to a larger pool of investors to raise the US$40 million needed to complete the stage-one development program at Bunyu. “Volt is the first mining company to pursue a DSE and Mauritian debt issue and listing and we are now nearing the final stages of the approval processes in both jurisdictions which is very encouraging. “With recent progress on corporate funding and the development funding process nearing a conclusion, Volt is very excited to be turning its focus towards the development of this world-class project.” READ: Volt Resources secures US$1 million to progress Bunyu stage I development funding process Several additional development funding strategies were advanced in parallel, including the options of a bond issue and listing on the stock exchange of Mauritius (SEM), as well as private bond investment. In order to meet the information and disclosure requirements of the SEM, an additional experts report is being prepared. Varying discussions and project due diligence processes also continue between North American, African and Asia-based institutions and Volt’s adviser Exotix Capital. READ: Volt Resources advances funding pathways for Bunyu stage-one development Corporate funding of US$1 million was secured in June through the placement of nearly 21 million shares at 2.1 cents each, raising US$300,000. An 18-month loan facility for US$700,00 and more than 25 million options with an exercise price of 4 cents a share and 18-month maturity made up the remainder of funding. The funding provides flexibility to finalise the Tanzanian note offer approval as part of the Bunyu stage-one development funding process and assists with corporate debt restructuring. READ: Volt Resources works on funding options for Tanzanian Bunyu graphite During the quarter Volt also received financial support from two directors, with non-executive chairman Asimwe Kabunga and non-executive director Stephen Hunt providing $100,000 in short-term working capital. The funding is on an unsecured, arm’s length commercial term basis, repayable on or before July 15, 2019. Volt’s loan facility with RiverFort Global Capital and Yorkville Advisors has been extended by two months until September 14, 2019. The extension requires a US$375,000-payment comprising loan repayment of US$335,106 which reduces the final amount payable to USW$664,894 from US$1 million plus an extension fee of US$39,894. READ: Volt Resourcs adds project management experience to board Other notable changes during the quarter included the appointment of Giacomo (Jack) Fazio as a non-executive director after Alwyn Vorster’s resignation. Fazio is an experienced project, construction and commercial management professional and has held senior project management roles with Primero Group Limited, Laing O’Rourke and Forge Grouip Ltd. His experience ranges from feasibility studies through to engineering, procurement, construction and commissioning of diverse mining, infrastructure, oil & gas and energy projects.

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