Volt Resources Ltd (ASX:VRC, OTC:VLTRF) has begun negotiating commercial terms with a large customer to finance the Bunyu Graphite Project in Tanzania after graphite concentrate created from a 113-tonne bulk sample of ore met all specifications.
The concentrate sample met the requirements specified by the customer including particle size, particle size distribution, density, moisture and carbon content.
The bulk sample was delivered on January 17, 2024, for evaluation and Volt expects to receive feedback before March 29.
Securing financing a “top priority”
“Obtaining funding for the Bunyu project in Tanzania continues to be a top priority for Volt and we're happy to report significant advancements in this objective,” Volt Resources managing director and CEO Prashant Chintawar said.
“We have successfully mined sample ore at Bunyu, secured export permits, shipped ore and more recently, produced concentrate according to customer requirements, and delivered samples of this for assessment.
“We anticipate a successful qualification by the customer which will assist in securing financing.
“China’s move late last year in restricting graphite exports is helping drive progress with the Bunyu project, and we are optimistic about a favourable outcome. We will keep investors informed with updates as developments unfold.”
Volt believes that Bunyu is one of the few global graphite projects that meet quality, quantity, cost and Inflation Reduction Act compliance requirements of large battery customers.
The company remains confident that successful completion of product qualification and negotiation will enable it to secure Bunyu financing.