Volt Resources appoints Exotix Capital to raise up to US$30 million
Wednesday, 25 October 2017 Volt Resources Ltd (ASX:VRC) has appointed the experienced and well-qualified investment banking firm, Exotix Capital, to raise up to US$30 million via a Tanzanian Bond Issue. The proposed funding is to be deployed in early-2018 to complete the Stage 1 development of Bunyu Graphite Project targeting production of 20,000 tonnes per annum of graphite products by late 2018. Volt’s Bunyu project is Tanzania’s largest graphite mineral resource, and can produce graphite suitable for both battery production and building material uses. READ NOW: Volt Resources' shares rise on positive feedback for Bunyu graphite product Volt will also continue to consider other funding proposals it is currently negotiating. Timeline for funding Upon completion of the proposed raising, Volt will have the bonds listed on the Dar es Salaam Stock Exchange (DSE) in Tanzania. The estimated timeframe to complete a DSE listing is 8-12 weeks. Asimwe Kabunga, chairman for Volt, commented: "Volt is pleased to be partnering with the team at Exotix over the coming months as we pursue an in-country bond issue in Tanzania to fund the initial Stage 1 development of our Bunyu graphite project. "Exotix brings to the table an extensive network of East African investors and a comprehensive strategy to access these local parties who have a strong appetite for large-scale resource projects such as Bunyu. "We look forward to continuing to provide shareholders with further funding and operational updates in due course." Exotix’s CEO, Duncan Wales, added: "We are happy to be working on such an important project with Volt to support Tanzania’s growth as a major producer and exporter of natural graphite amid increasing demand for the mineral." Importance of the region Tanzania and Mozambique are home to Africa’s largest deposits of graphite, a mineral increasingly in demand because of its variety of uses, including as a fire retardant in building materials and for use in batteries for powering electric vehicles. The manufacture of lithium-ion batteries used in electric vehicles requires nine times more graphite than lithium. By 2020, analysts estimate the demand for flake graphite will exceed 500,000 tonnes per annum, largely due to an approximate 400% increase in battery graphite feedstock demand from 2016.