ASX-listed graphite developer Volt Resources has confirmed that its draft prospectus for the company’s USD$40 million Mauritian Note has been lodged with the Stock Exchange of Mauritius (SEM) and approval is expected within 4 weeks.
The Mauritian bond issue follows on from the company’s previously announced Tanzanian Note issue, both of which will provide funding to underpin the company’s planned development of its Bunyu Graphite project in Tanzania.
The project has a confirmed JORC-compliant mineral resource of 461 million tonnes going 4.9% total graphitic carbon or “TGC” and has generated an ore reserve of 127 million tonnes grading 4.4% TGC.
Notably, 81.3% of the graphite comprises the sought-after “Super Jumbo”, “Jumbo” and other large flake categories and Volt already has existing off-take agreements in place with Chinese companies Qingdao Tiangshengda Graphite and HAIDA Graphite.
Discussions have continued to advance with Tanzanian government authorities in relation to gaining approval for the company’s Tanzanian Note Issue however the SEM Note does not require Tanzanian Government approval and fund raising can commence immediately on receipt of approval from the SEM.
In addition to the twin note issues, Volt has confirmed discussions with African and North American institutional investors in support of its Stage 1 funding strategy.
The company has also confirmed that the outstanding loan notes due to Riverfort global Capital and Yorkville Advisors have now been fully repaid paid.
The debt payback was funded from the company’s recently completed Share Purchase Plan. Volt shareholders, eligible directors and CEO Trevor Matthews all took up their maximum allocation in support of the plan.
In July 2018, the Bunyu feasibility study showed that the project would produce 23,700 tonnes of graphite product per year generating an EBITDA of USD$93.6m per annum.
Payback on Stage 1 of the development is expected to be a little more than 4 years whilst capital costs are expected to come in at just US$32m according to the company.
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