Volt Resources announces A$1.6m capital raising for graphite anode business expansion

Volt Resources Limited (ASX: VRC) revealed its plan to raise a total capital of A$1.632 million, which combines a A$1.132 million Placement and an additional Share Purchase Plan (SPP) that could reach A$0.5 million.

Key Developments:

• Capital Allocation Focus: Funds accrued from this capital raising effort are to be systematically channelled into enhancing Volt’s cohesive graphite battery materials approach. This includes cultivating its downstream graphite anode venture, furthering the Bunyu Project in Tanzania, and fostering the Zavalievsky Graphite enterprise.
• Support from China: China’s recent decision to constrict graphite exports — where China is a dominant figure — amplifies the importance of graphite sources outside its boundaries. This move potentially elevates companies, such as Volt, that provide an integrated solution.
• Offer Price & Shares: New shares under the Placement will be offered at A$0.007 each. There’s a subsequent plan to issue 80,857,143 listed options to Placement participants, maintaining alignment with Volt’s pre-existing listed options.
• Involvement from Key Executives: The company’s top executives, including Executive Chairman Asimwe Kabunga, CEO Prashant Chintawar, and Non-executive Director Jack Fazio, are subscribing to placement shares totalling $200,000, subject to the nod from shareholders.
• Share Purchase Plan: In addition to the Placement, the SPP aims to accumulate up to $500,000, exclusively targeting shareholders in Australia and New Zealand as of 20 October 2023. Shares from the SPP will be on par with existing shares.
• Utilization of Funds: The capital will chiefly sponsor the downstream graphite anode enterprise, Bunyu Graphite Project, the Zavalievsky Graphite business, general working capital, and other corporate endeavours.

About Volt Resources:

Established as a graphite producer, Volt Resources Limited is branching out as a natural graphite anode producer, vital for lithium-ion batteries. With a 70% stake in the Zavalievsky Graphite business in Ukraine and a strategic Bunyu Graphite Project in Tanzania, Volt is poised for considerable growth in the graphite market.

Prashant Chintawar, Volt’s CEO and Managing Director, commented, “We are pleased with the vote of confidence from current and new institutional and sophisticated investors in the Placement.”