Volt Resources has completed a share placement to sophisticated and professional investors at $0.015 per share, with firm commitments to raise $3.0 million.

In addition, all Volt directors subscribed for an additional $650,000 on the same terms as the placement, subject to shareholder approval, for a total commitment of $3.65 million.

Volt Resources advances 70% of Zavalievsky Group acquisition

Demand for the placement shares was excellent with offers significantly exceeding the target capital raising amount of $3.0 million.

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180 Markets acted as the Lead Manager to the Placement.

Volt MD, Trevor Matthews, comments:

“I am extremely pleased with the strong support we received for the capital raising from Volt’s current shareholders with Volt Chairman, Asimwe Kabunga, providing a cornerstone role.

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“The Volt board welcomes all new shareholders and looks forward to a long and successful association.

“Importantly, this funding leaves the company debt-free and well-funded to advance the proposed acquisition of the Zavalievsky Graphite business along with our gold exploration programmes.

Volt also continues to advance discussions with African development banks for the Stage 1 Development funding of our Bunyu Project.

“We have a lot of exciting activities in progress and I look forward to providing further updates to shareholders in due course.”

The proceeds from the Placement will be used to fund the following:

  • Repay the Lars Bader debt facility due 26 February 2021 which, once paid, will leave Volt debt-free;
  • Fund the gold exploration programs currently in progress in Guinea;
  • Activities related to the proposed acquisition of a 70% interest in the Zavalievsky Graphite Business in Ukraine including legal, financial, tax, technical, and operational due diligence into The ZG Group and the Zavalievsky Graphite business and legal costs to complete binding share Sale and purchase agreements with the selling shareholders and a shareholder’s agreement with the remaining 30% shareholder;
  • To provide working capital while advancing the development funding activities for Volt’s Bunyu Graphite project in south east Tanzania; and
  • corporate costs and general working capital