Volt Resources Ltd (ASX:VRC) has received firm commitments from sophisticated and professional investors in an oversubscribed placement that has raised $5.05 million, well above the original target of $4 million.
There will be 230 million new fully paid ordinary shares issued to existing shareholders, new sophisticated investors, funds and institutions at a price of $0.025 per share.
Chairman Asimwe Kabunga has subscribed for an additional $700,000 worth of shares on the same terms as the placement and this is subject to shareholder approval.
If approved, this will increase the capital raising total to $5.75 million.
Use of funds
A primary focus for the funds raised will be to commercialise the development of battery anode and other downstream graphite products for use by European battery manufacturers in Europe as well as for use in the United States.
The company also plans to use proceeds from the placement to:
- Drive the newly acquired Zavalievsky Graphite Business;
- Complete Lithium-Ion Battery (LIB) cycling test work on graphite from the Bunyu project;
- Provide working capital, while advancing development funding activities for Volt's Bunyu Graphite Project in Tanzania; and
- Corporate costs and general working capital.
“Very successful capital raising”
Volt managing director Trevor Matthews said: “This has been a very successful capital raising with strong demand from Volt’s existing shareholders including Volt chairman Asimwe Kabunga and from new investors.
“This has provided the opportunity for Volt to raise an increased amount of funds to execute on the exciting programs of work that are underway in Europe, the United States, Tanzania and Guinea.
“The Volt board welcomes all new shareholders and looks forward to a long and successful association.
“We have a lot of activities in progress and I look forward to providing further updates to shareholders in due course.”
Placement details
The placement price of $0.025 represents a 15.5% discount to the 15-day volume-weighted average price before the trading halt.
Volt plans to issues shares, apart from those subject to shareholder’s approval, by Thursday, September 9, 2021.
Melbourne-based boutique firm Peak Asset Management acted as the lead manager to the placement.