Dar es Salaam — The Australia Stock Exchange (ASX) listed Volt Resources has said it raised $4.7-million to support the fast-tracking of the first stage development of flagship Bunyu graphite project, in Tanzania.
The Tanzania-focused flake graphite development company exercised 235.6-million listed options at $0.02, with the shortfall of 24-million.
A statement issued by the company has revealed that the amount was jointly underwritten and taken up by Empire Capital Partners and Cove Capital under an option underwriting agreement.
"Volt is now strategically positioned to execute on a number of operational milestones as part of the Stage 1 development of Bunyu, with near-term deliverables to include the finalisation of all project approvals and completion of the Stage 1 feasibility study," Volt chief executive officer Trevor Matthews said yesterday.
The statement has said that the first feasibility study for the project is expected to be completed in the first quarter of 2018.
Volt aims to develop Bunyu Stage 1 to process 400 000 t/y of ore and produce a nominal 20 000 t/y of graphite products.
The company announced last month that it needs a tune of $40-million structured debt funding to complete the Stage 1 development of its Bunyu graphite project.
The company said in December that it has engaged Exotix Capital to undertake a Tanzania bond issue to raise the required funding for the development of Stage 1, which is targeting production of 20,000 t/y of graphite products starting in late 2018 or early 2019.
Volt said that Exotix did recommend a formal bond prospectus process and the listing of the bonds on the Dar es Salaam Stock Exchange. "The $40-million debt sizing allows for meaningful participation from Tanzania and Uganda pension funds, the project development," company said.
The Bunyu graphite project will be producing graphite suitable for battery anode production, flame retardant building materials, the developing graphene industry and traditional markets, including refractories.
"Exotix brings to the table an extensive network of East African investors and a comprehensive strategy to access these local parties who have a strong appetite for large-scale resource projects such as Bunyu," commented Volt chairperson Asimwe Kabunga.