Volt Resources Ltd (ASX:VRC), a Tanzanian-focused flake graphite development company, has received positive feedback as it seeks to negotiate offtake agreements.
Management has met with a number of parties in China, reporting that there is strong demand for coarse flake +150 micron material for use in the expandable graphite market.
Providing confidence that offtake agreements are pending is the fact that progress is being made towards exchanging draft binding offtake agreements from stage I production.
Another step in de-risking project
Volt’s recent progress with funding, combined with offtake agreements, would substantially de-risk the company’s Bunyu Graphite Project.
Clarity around these issues would also provide valuable input into the stage I feasibility study.
Shares rally 15%
Volt’s share price surged more than 15% last Friday as chief executive officer Trevor Matthews highlighted the significance of the recent US$40 million note issue.
WATCH NOW: Volt Resources strives to be leading flake graphite producer
Matthews expects that the company can be back on track to commence construction of a 20,000-tonnes per annum stage I project in the current quarter.