Volt Resources Ltd (ASX:VRC) has raised $5.05 million, well above the original target of $4 million, from a placement of shares to sophisticated and professional investors at $0.025 per share.
As a part of the fundraising initiative, the company issued 230 million new fully paid ordinary shares issued to existing shareholders, new sophisticated investors, funds and institutions.
Volt’s chairman Asimwe Kabunga has also subscribed for an additional $700,000 on the same terms as the placement, which is subject to shareholder approval. If approved, this will increase the capital raising the total to $5.75 million.
The company has transitioned into a graphite producer after acquiring the Zavalievsky Graphite business in the Ukriane and is focused on advancing development of the wholly-owned Bunyu Graphite Project in Tanzania.
Use of proceeds
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 the Bunyu Graphite Project in Tanzania; and
- Corporate costs and general working capital.
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.
Melbourne-based boutique firm Peak Asset Management acted as the lead manager to the placement.
Additional exchanges
The company also advises that in addition to the Tradegate and Frankfurt exchanges, the company’s shares are now being traded at four additional German exchanges - Munich, Berlin, Gettex and Stuttgart.