ASX-listed Volt Resources is in the final stages of securing approval from the Stock Exchange of Mauritius, for a USD$40m note issue that will underpin the stage 1 development of its Bunyu graphite project in Tanzania.
Volt has received positive feedback from Stock Exchange officials and is confident it will receive final approval soon. The Perth based company is the first of its kind to seek a note issue and list on the Mauritius Stock Exchange.
Capital markets in the African region are thriving with the Mauritius Stock Exchange now boasting over 200 listed companies with a total market capitalisation of approximately USD$12 billion.
Volt also said that discussions have continued with senior officials of the Tanzanian ministry concerning the company’s Tanzanian Note Issue and the company is confident of receiving the required approval shortly it said.
The note does not require Tanzanian Government approval and fundraising can commence immediately on receipt of approval from the Exchange.
Volt’s Bunyu graphite project has a confirmed JORC-compliant mineral resource of 461 million tonnes grading at 4.9% total graphitic carbon which takes in its 127 million tonne reserve.
Notably, 81.3% of Volt’s graphite is comprised of the highly sought-after “Super Jumbo” and “Jumbo” graphite flakes and Volt already has existing off-take agreements in place with Chinese companies, Qingdao Tiangshengda Graphite and HAIDA Graphite.
In July 2018, the company released a feasibility study for Stage 1 of Bunyu that showed the operation would churn out an average of 23,700 tonnes of graphite product per annum to generate a total EBITDA of USD$93.6m over an initial seven-year mine life
Payback on the Stage 1 development is estimated by the company to be a little over four years while capital costs are expected to be a modest USD$32m.
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