The listed options exercise process was strongly supported, with approximately 90% of Volt Resources option holders exercising their options.
The shortfall of approximately 24 million options was jointly underwritten and taken up by Empire Capital Partners and Cove Capital.
Importantly, this additional funding provides Volt Resources with the required financial flexibility to aggressively progress the planned Stage 1 development of the company’s flagship Bunyu graphite project in Tanzania, with the stage 1 feasibility study expected to be completed in late Q1 2018.
Volt’s near-term strategy is to develop Bunyu Stage 1 to process 400 000 tpa of ore and produce a nominal 20 000 tpa of graphite products.
The Stage 1 development is to produce bulk graphite product which will both satisfy the existing off-take agreement and the non-binding off-take agreements entered into with four potential Chinese customers1.
The Bunyu graphite project has already demonstrated PFS project economics of US$1.3 billion NPV (pre-tax) with a 1.4 year payback based on annual production of approximately 170 000 tonnes of graphite product.
Volt Resources is proceeding with its proposed US$40 million Tanzanian bond issue with specialist frontier markets investment bank Exotix Capital.
Exotix is a market leader in structured finance packages for natural resource projects in African economies.
“We are extremely pleased to have further strengthened our cash position through the successful exercise of the options, and the Volt’s board and I would like to thank our loyal shareholder base for their continued support,” comments Volt Resources CEO Trevor Matthews.
“I would also like to thank both Empire and Cove for their support throughout the process,”
“Volt is now strategically positioned to execute on a number of operational milestones as part of the stage 1 development of Bunyu, with key near-term deliverables to include the finalisation of all project approvals and completion of the stage 1 feasibility study this quarter,” he continues.
“We will also concurrently advance our planned Tanzanian bond issue through our partnership with Exotix Capital aimed at securing the required funding for the development of Stage 1.
“It is also worth noting the recent funding success of Tanzanian based Swala Oil & Gas, with Exotix Capital placing an initial tranche of US$25 million.
“This demonstrates Exotix’s strength in financing selected high quality natural resource projects in Tanzania.
“We are excited to be entering the new year with a number of significant value catalysts in the short term and we look forward to keeping our shareholders updated on these corporate and operational developments over the coming months,” notes Matthews.
Feature image credit: Wikimedia