Volt Resources Extends Mauritian Note Offer’s Closing Date as Investors Undertake Due Diligence

Graphite exploration and development company, Volt Resources Limited (ASX: VRC) has announced that the closing date of the Company’s Mauritian Note Offer (Note Offer) has been extended so as to provide sufficient time to investors to finalise their due diligence and investment approval processes.

Mauritian Note Offer

The Note Offer opened on 27 January 2020 and is now planned to close by 24 April 2020. The first day of trading of the Notes on the Stock Exchange of Mauritius DEM is expected to be 30 April 2020.

As previously advised to the market on 28 January 2020 that Volt’s wholly-owned subsidiary, Volt Graphite Tanzania Plc (VGT) is aiming to raise USD 15 million through the issue of Senior Notes with a greenshoe option of up to USD 15 million to raise a total of USD 30 million by way of a private placement on the Development and Enterprise Market (DEM) of the Stock Exchange of Mauritius (SEM).

The Company and its advisor, Alphier Capital (formerly Exotix Capital) along with local brokers, had commenced investor meetings from 27 January 2020 as part of an extensive three-week roadshow to market the Notes to sophisticated investors in Mauritius, Kenya, South Africa and the Middle East. As a result, interested groups are now undertaking due diligence before they make a final investment commitment.

During the roadshow, a number of other alternative funding proposals were also presented to the Volt Resources and these are currently being progressed in parallel with the completion of the SEM Note Offer process.

“We are pleased with the positive feedback received to date from potential investors and given this is the first offer of securities by a mining company on the Mauritian Stock Exchange we are happy to extend the Note Offer period to provide more time for investors to assess the opportunity and complete their investment decision making processes. I look forward to providing further updates in the near-term as our funding alternatives are advanced.” Said Trevor Matthews, Volt’s Chief Executive Officer.

Utilisation of Funds – Development of Bunyu project

The funds raised from the Issue have been indicated to be used for commencement of Stage 1 development of the Company’s flagship Bunyu Graphite Project in Southern Tanzania; construction of a 400,000 tonnes per annum concentration plant and related infrastructure; and financing of the resettlement costs of people currently farming and/or living within the project development area.

Source: 121 Event – Cape Town Company Presentation 4 February 2020

Stage 1 and Stage 2 of the Bunyu Graphite Project are fully approved with environmental and mining licenses in place. Stage 1 development, with a production target of 23,700 tonnes per annum, would establish critical infrastructure, product market position and operations experience to de-risk Stage 2 expansion with a production target of ~170,000 tonnes per annum of graphite products.

Volt Resources plans to commence production under Stage 1 by Q1/Q2 2021 and cash-flows are expected to come in by Q2 2021. The Bunyu products are garnering a robust market demand with significant offtake agreements inked with major Chinese partners and US graphene producer.

More in detail on Volt Resources development activities can READ here.

Stock Performance: With a market capitalisation of ~ AUD 20.87 million with ~ 1.74 billion shares outstanding, the VRC stock was trading at AUD 0.011 on 21 February 2020 (AEDT 02:23 PM). Besides, VRC has delivered positive returns of 9.09% Year-to-date and 0.65% in the last one month


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