Tanzanian focused flake graphite development company Volt Resources has received binding commitments for a share placement to raise A$2 million.
Patersons Securities acted as the lead manager to the Placement.
There was strong demand for the placement with the majority of the new fully paid shares being subscribed for by institutional investors.
Funds raised will be used to repay the convertible loan facility and for working capital requirements as Volt Resources progresses its project approvals and financing programmes in Tanzania.
Under the placement, Volt Resources will issue 86,956,523 new fully paid ordinary shares to sophisticated and professional investors at A$0.023 per share.
Patersons will receive 8 000 000 options with an exercise price of A$0.06 expiring on 30 April 2019 as part remuneration for its role as lead manager.
Settlement and issue of the new fully paid ordinary shares subscribed for under the placement and the issue of the Patersons’ options is expected to occur on 20 June 2018.
The placement and the Patersons’ options will be issued under the Volt Resources’ available ASX-Listing Rule 7.1 placement capacity and do not require shareholder approval.
“With the company now on the cusp of delivering a number of company making milestones including obtaining key project development approvals and securing development funding, the board believes it was timely to strengthen its near-term cash position,” comments Volt Resources chairman, Asimwe Kabunga.
“Further, we are pleased with the level of support for the capital raising by institutions and sophisticated investors and Volt Resources looks forward to providing further updates on key corporate and operational developments in the near-term,” he adds.