Volt Resources Ltd (ASX:VRC) has received firm commitments from professional and sophisticated investors to subscribe for 555,555,556 fully paid ordinary shares at $0.018 per share to raise $10 million before costs.
Volt will issue an equivalent number of listed options to participants in the placement, being one listed option for every share subscribed for under the placement.
The listed options to be issued to participating shareholders will be in the same class as Volt’s existing listed options, with an exercise price of 2.4 cents and an expiry date of June 30, 2025.
The issue price of $0.018 per placement share under the placement represents a 5.3% discount to the closing price of the company's shares prior to the stock being placed in a trading halt on November 11.
"Heavily oversubscribed"
Volt says the placement was heavily oversubscribed, having sought to raise a minimum of $5 million, with total applications exceeding $22 million.
The leadership team is also pitching in, with Volt’s chairman to subscribe for $1 million, its managing director for $50,000 and a non-executive director for $30,000 in placement shares, subject to shareholder approval. This support will raise an additional $1.08 million.
This placement comes as production at the Zavalievsky mine in Ukraine regains momentum and valuable downstream initiatives continue to accelerate as the market starts to secure graphite sources for the rapidly growing battery sector creating an integrated graphite mine-to-cell-maker supply chain.
"Reflective of rare opportunity"
Managing director Trevor Matthews said: “The Volt board had hoped to raise $5 million, so to receive applications for over $22 million from existing shareholders, new institutions and sophisticated investors has been highly encouraging, and we believe reflective of the rare opportunity that Volt presents investors seeking exposure to the production of graphite as well as higher-value graphite products used in lithium-ion batteries and other battery technologies.
“Volt’s entire board has shown their continuing commitment to the company and its plans through participation in the capital raising, including a proposed $1 million investment by Volt’s chairman Asimwe Kabunga.”
Melbourne-based boutique investment management firm Peak Asset Management acted as lead manager to the placement.
Where will the money go?
The funds raised will be channelled into advancing Volt’s integrated graphite battery materials business plans, including:
- Preparation of a feasibility study for a commercial-scale LIB active anode material production facility that can be used as a template design for facilities in the US – such as the Energy Supply Developers super site – and Europe.
- Continuing production of lithium-ion battery anode, cathode conductive additive, alkaline and lead acid battery product samples for customer test-work and offtake discussions.
- Completion of the update of the Bunyu Stage 1 feasibility study focused on capital and operating costs and approvals.
- Further working capital to assist in stabilising graphite production from the Zavalievsky mine and processing plant and the export of graphite products to customers in Europe.
- Ongoing business development, Bunyu graphite offtakes and Bunyu financing discussions and negotiations.
- Corporate expenditure and working capital.