Volt Resources Ltd (ASX:VRC) has raised $612,907 in a 1 for 12.9 non-renounceable rights issue with another $600,000 expected from an underwriting arrangement for a total of almost $1.213 million.
The company received acceptances for 61,290,723 shares with the subsequent shortfall being 63,805,449 shares.
$600,000 underwriting
Kabunga Holdings Pty Ltd, a company controlled by Volt’s chairman Asimwe Kabunga, has underwritten the rights issue to the amount of $600,000, the equivalent of 60 million shares.
Volt will issue a notice to the underwriter specifying the number of shortfall shares following which the underwriter will make an application for these shares up to the underwritten amount.
The company’s directors have thanked all participating shareholders and investors for their support.
Note issue approvals process
Funds raised will primarily be used to advance the approvals process of the respective Dar es Salaam (DSE) and the Stock Exchange of Mauritius (SEM) listed note issues.
Volt will also use funds to meet existing payable obligations and for general corporate and working capital purposes.
In addition, Volt will review its Australian-based structure and activities to reduce expenditure, particularly while stage I project development funding activities are in progress for the Bunyu Graphite Project in Tanzania.
New shares issued today
The new shares under the rights issue are expected to be issued today with trading to start tomorrow.
Directors have reserved the right to place any or all of the remaining 3,805,449 shortfall shares within three months of the closing date of the rights issue.
Volt is focused on the financing of its wholly-owned Bunyu project in Tanzania’s southeast.
The project ideally located near to critical infrastructure with sealed roads running through the project area and ready access to the deep-water port of Mtwara 140 kilometres away.
Plan for stage I development
Stage I development is based on a mining and processing plant annual throughput rate of 400,000 tonnes of ore to produce on average 23,700 tonnes of graphite products.
A key objective of this development is to establish infrastructure and market position in support of the development of the significantly larger stage II expansion project.