In a strategic move to capitalise on the global graphite market dynamics, Volt Resources Ltd (ASX:VRC, OTC:VLTRF) has made strong progress with financing negotiations for its wholly-owned Bunyu Graphite Project in Tanzania.
The company's actions come in the wake of China's recent decision to restrict graphite exports, a move that has significantly amplified interest in alternative graphite sources, such as the Bunyu project.
Volt is negotiating commercial terms with a large customer to enable financing for Bunyu.
To meet the customer’s request for a large quantity of graphite concentrate sample, the company has mined 113 tonnes of graphite ore for processing.
The ore will be processed into graphite concentrate for customer delivery by the end of the year.
Priority task
Volt managing director and CEO Prashant Chintawar said: “Securing financing for the Bunyu project remains one of our priority tasks and we are pleased to announce the company is making meaningful progress.
“Having selectively mined 113 tonnes of ore and sent it to port, we look forward to shipping it for processing to the pilot plant and qualification by the customer.
“The recent news of China’s move to restrict graphite exports has added extra impetus to advancing Bunyu and we are confident of a successful process.
“We look forward to updating investors as news warrants.”
Issued export permits
To deliver a large quantity of graphite concentrate sample, Volt identified the location for mining, secured necessary approvals from Tanzanian Government officials and the community, rented the mining equipment and mined about 113 tonnes of graphite ore.
The ore was transported by trucks from the site to Dar es Salaam, where it has been tested by Government officials who have issued export permits.
Forward plan
To produce a testable graphite concentrate, some of the ore will be shipped by November 30 to a competent graphite ore processing pilot plant.
Volt personnel will oversee the ore processing to ensure a desired quantity and quality of graphite concentrate will be delivered to the prospective customer before the year's end.
The company remains confident that the successful completion of product qualification and negotiation will enable it to secure Bunyu financing.