By Oscar Nkala
Australian Stock Exchange (ASX)-listed Volt Resources Limited (VRC) gained a 50% share price increase over the past month after announcing a drafting of proposing a US$40 million bond issue to finance the development of the Bunyu Graphite Project in Tanzania.
In a statement, the company said funds raised from the completion of the bond issue will be invested in the first developmental stage of the project.
“The company recently hosted a visit of its Bunyu Graphite Project in Tanzania for potential bond investors. The investor visit covered the planned mine and mineral processing site and the Mtwara port facilities.
“Attendees included representatives from Exotix and Orbit Securities Limited, as well as local community leaders. Importantly, the site tour confirmed that East African investor appetite for US dollar linked Tanzanian listed fixed income is robust,” the company said.
The first-stage developmental project is part of a broader plan to broaden the mineral portfolio base and position the company as one of the top three global suppliers of natural graphite by 2020.
Last month, VRC submitted mining licence applications covering stages 1 and 2 of the Bunyu project. Pending approval, development should start later this year, with an annual production target of circa 20 000 tonnes of high-quality graphite products.