Volt Resources Ltd (ASX:VRC) (FRA:R8L) has been granted a trading halt by the ASX with an announcement pending relating to completion of the acquisition of a 70% interest in a Ukraine graphite business.
The halt will remain in place until the beginning of regular trade on Wednesday, June 16, or when an announcement is released to the market, whichever occurs earliest.
Loan agreement executed
Volt recently executed a full form loan agreement and associated security documents with European investment company JES Green Investments Limited for an US$8.5 million loan facility to assist with funding the proposed acquisition of a 70% interest in the Zavalievsky group (ZG) of companies.
The first tranche of US$4.million has been drawn providing the funds for Volt to proceed to completion of the acquisition and related expenses as well as to provide working capital.
In order to advance plans Volt managing director Trevor Matthews travelled to Ukraine to attend the ZG Group acquisition completion meeting.
Transition to producer
The company considers this transaction as a logical and value accretive step and will instantly transition it from a graphite explorer and developer into a graphite producer.
Volt will become one of the few ASX-listed graphite producers without the usual time and risk related to complete greenfield project financing, construction, commissioning and ramp-up.