Volt Resources enters A$1 million loan agreement to bolster graphite strategy
Published: 11:19 24 Apr 2024 AEST
Critical minerals and battery material company Volt Resources Ltd (ASX:VRC, OTC:VLTRF) has entered an agreement with RiverFort Global Capital Ltd for an aggregate loan of up to A$1 million with funds to progress the company’s strategy to become a leader in the graphite market.
RiverFort will advance A$250,000 to the established graphite producer and natural graphite anode developer on the agreement’s execution date with further drawdowns in the aggregate up to the A$1 million by mutual decision between the investor and Volt.
Importantly, Volt does not intend to extend the facility beyond the maturity date and utilise the extension terms. The maturity date is four months from the execution date, which is the date on which the agreement is signed by all relevant parties and is executed.
READ: Volt Resources identifies industrial site in Alabama for graphite anode production facility
Use of funds
With recent announcements on downstream activities and the development of the Bunyu Graphite Project in Tanzania, Volt plans to use these funds to advance these activities and for other general working capital purposes.
Volt’s executive chairman Asimwe Kabunga said: “We are pleased to obtain funding for our projects from this facility.
"Volt continues to make strong progress on key initiatives with its downstream activities. Our strong non-dilutive funding pipeline forms a key part of this strategy to become a graphite market leader.
"Volt’s intention is to repay the funds advanced under the facility by the Maturity Date.”
READ: Volt Resources progresses graphite ambitions with four non-dilutive funding programs
About the company
The company is an established graphite producer through the Zavalievsky Graphite (ZG) business in Ukraine and an emerging natural graphite anode producer to serve the burgeoning lithium-ion battery industry.
At ZG, the mine and processing facilities have been in operation since 1934 and are near key markets with significant developments in lithium-ion battery production.
READ: Volt Resources advances Bunyu Graphite Project with additional testing
The company’s flagship is the Bunyu Graphite Project in Tanzania that is ideally located near to critical infrastructure with sealed roads running through the project area and ready access to the deepwater port of Mtwara 140 kilometres away.
In August 2023, Volt completed a revised feasibility study for Stage 1 development of Bunyu based on a mining and processing plant annual throughput rate of 400,000 tonnes of ore to produce on average 24,780 tonnes of graphite products.
Volt is also progressing plans to establish a 10,250 tonnes per annum natural graphite anode powder production plant in the US.
It intends to feed the graphite anode facility with graphite from the Bunyu Project, which holds a mineral resource estimate of 461 million tonnes at 4.9% total graphitic carbon (TGC) for 22.6 million tonnes of graphite, and a proven reserve of 127 million tonnes at 4.4% TGC.
