Volt Resources Ltd (ASX:VRC) (FRA:R8L) has been granted a trading halt with an update pending in relation to the acquisition of the Zavalievsky graphite business in Ukraine.
In its request to the ASX for the halt, the company said it was also in relation to "working capital funding".
The trading halt will be in place until the start of normal ASX trading on Friday, May 28, or until an announcement is released to the market.
European graphite acquisition to become producer
Volt completed due diligence for the acquisition of a 70% interest in the Zavalievsky Group of Companies (ZG Group) on May 14.
If it proceeds, this acquisition will result in the transformation of Volt into a graphite producer from ZG Group's operations in Ukraine.
Due diligence on the following areas of the Zavalievsky business has been completed and accepted by the Volt board and management:
- Financial and Tax – Deloitte Ukraine;
- Legal and Commercial – AVELLUM;
- Technical (processing, engineering, capital projects, organisation) – Bilfinger Tebodin Ukraine; and
- Technical (geology, mining, environment) - Wardell Armstrong International.
The company has formally advised the vendors that the due diligence enquiries have been satisfactorily completed.