ASX-listed graphite developer Volt Resources has received firm commitments from investors to raise capital for its flagship Bunyu graphite project in Tanzania.Following a recently completed share purchase plan, in which Volt Resources raised US$2.338 million, the company has received firm commitments from sophisticated and professional investors to raise an additional $900 000 via a top‐up placement.
These additional funds from top-up placement will take total funds raised to over $3.2 million.
Funds raised from the recently completed share purchase plan and subsequent placement will be used to complete the feasibility study and associated activities for the Stage 1 Bunyu graphite project development and assist in accelerating exploration and drilling at Bunyu.
Patersons Securities underwrote the share purchase plan and received no shortfall due to strong take up by Volt shareholders. The Company is pleased to advise Patersons have agreed to facilitate the placement through the issue of new shares at an issue price of 2.1 cents per share, the same price as the share purchase plan.
The placement shares are planned to be issued in the week of 6 November.
“Volt now has the requisite funding flexibility to scale-up its exploration and drilling activities at the Bunyu graphite project, as we target the completion of a feasibility study on the Stage 1 development of Bunyu, which is expected to be delivered early next year,” says Volt CEO Trevor Matthews.
“We are also actively progressing the Stage 1 funding process with Exotix Capital for the development of Bunyu,” he adds.
Volt engaged Exotix Capital in October to undertake a Tanzanian Bond issue to raise up to US$30 million in structured debt. If successful, the proposed bond financing will ensure that project development funding will be undertaken with minimal equity dilution.
Volt Resources’ Banyu graphite project is the largest JORC mineral resource deposit in Tanzania and can produce graphite suitable for both battery production and building material uses.