Volt Resources Ltd (ASX:VRC, OTC:VLTRF) has received firm commitments for A$1.132 million of A$1.6 million the company intends to raise to advance its downstream graphite anode business, via a placement with institutional and sophisticated investors.
In addition, Volt’s board will also contribute to the capital raise, with executive chair Asimwe Kabunga to subscribe for A$150,000, managing director and CEO Prashant Chintawar to subscribe for A$40,000 and non-executive director Jack Fazio to subscribe for A$10,000 in placement shares, subject to shareholder approval.
To cap the raise off, VRC will offer a share purchase plan (SPP) to shareholders in Australia and New Zealand to raise up to A$500,000, on the same terms as the placement.
Vote of confidence
“We are pleased with the vote of confidence from current and new institutional and sophisticated investors in the placement,” Volt Resources CEO and managing director Prashant Chintawar said.
“We are also pleased to provide eligible shareholders the opportunity to participate in the capital raising via the SPP.
“The funds raised will be allocated diligently to advance Volt’s integrated graphite battery materials strategy, including the development of our downstream graphite anode business, and progress the Bunyu Project, Tanzania, and our Zavalievsky Graphite business.
“As well as receiving support from shareholders, Volt’s strategy of becoming a leading integrated graphite battery materials producer received further validation with the news from China that it would move to curb exports of graphite.
“Given China currently dominates graphite production and refining, this move will likely place a focus and a premium on ex-China sources of graphite, putting companies with an integrated solution such as Volt into the spotlight.
“We thank shareholders for their support and believe that their confidence will be rewarded.”
Funds raised under the placement and SPP will go to:
- Develop downstream graphite anode business;
- Progressing the Bunyu Project, Tanzania;
- Progressing Zavalievsky Graphite, Ukraine; and
- For general working capital and corporate purposes.