Volt Resources Ltd (ASX:VRC) has looked back on a busy September quarter, one in which the company completed a key acquisition in Ukraine and transformed to graphite producer status.
During the period, the graphite and gold explorer and project developer snapped up a 70% controlling interest in the Zavalievsky Graphite (ZG) Group, a consortium of three graphite-centric businesses in Eastern Europe.
Through the transaction, Volt plans to produce battery anode material using the ZG Group’s existing graphite production, meaning it can supply the mineral to lithium-ion battery makers based in Europe.
Over the quarter, the ASX-lister also joined the European Raw Materials Alliance (ERMA), a forum designed to bolster the continent’s critical material access.
On the gold side, VRC expanded an exploration campaign tied to its Guinean projects and has since received all the associated assay results.
Volt ended the period with $3.06 million in cash after a $5.75 million capital raise during the quarter provided a key cash injection to support its operations.
Improving ZG Group’s performance
Speaking to the quarter’s achievements, Volt Resources managing director Trevor Matthews stated the acquisition’s completion was “very satisfying”.
“Volt is now in a position to improve the ZG business not only operationally, but also implement improved environmental, social and governance (ESG) practices.
“From the short period we have been a shareholder in the business, Volt sees enormous opportunities to improve its performance in a number of areas and leverage its large resource base to scale up its graphite production in Europe.
“This will assist Volt to deliver on its strategy to become a key supplier of natural flake graphite products and battery anode material to the growing EV and other graphite markets based on an integrated mine-to-customer supply chain.”
Acquisition complete
Earlier in the year, Volt flagged its intention to move away from the exploration and development side of the graphite market and become a fully-fledged producer.
Now, with the ZG Group acquisition under its belt, VRC has done just that, and become one of the ASX’s few graphite producers.
To fund the US$3.8 million completion payment attached to the buy, Volt tapped investment fund SBC Global for a US$4 million convertible security.
It will pay out a second (and final) instalment, worth US$3.8 million, in July 2022.
With the acquisition comes the Zavalievsky mine and processing facilities, which have previously produced graphite products to supply Europe’s traditional industrial markets.
But there’s also scope to break into the lithium-ion battery anode market with ZG’s spherical purified graphite capacity.
And it seems the graphite hub is just getting started: Volt has estimated a multi-decade mine life for the project based on its current graphite mine and processing plant’s capacity.
Outside of Europe, Volt is also bringing its Bunyu Graphite Project in Tanzania to life.
It’s currently in the development stage and is using its recent $5.75 million capital raise to help fund associated programs as it brings the graphite play a step closer to production.
A new alliance
Volt’s move into graphite production is cemented by its membership in the European Raw Metals Alliance.
Formed in 2020, the group aims to develop and strengthen Europe’s raw materials value chains as the new evergy revolution comes to the fore.
More than 130 companies, 50 associations, 20 universities and research organisations and several financers, ministries and non-governmental organisations (NGOs) are already part of ERMA.
Through its membership, Volt gains access to project investment, technical and regulatory advice and support as it enhances its newfound graphite play.
The ASX-lister is already a member of the European Battery Alliance, meaning its latest membership adds to the support it’s currently receiving.
Speaking to Volt’s induction at the time, Matthews said: “With the acquisition of the Zavalievsky graphite business completed and Volt’s status as a producer of graphite products in Europe, membership of the two key EU sponsored battery materials alliances provide the opportunity to build relationships and obtain access to capital to support the expansion and product development plans for the European graphite business.
“Combined with the future production of graphite products from the development ready Bunyu Project in Tanzania and plans for processing capacity to supply the LIB industry in the United States, Volt will be uniquely positioned as a globally significant and diversified graphite producer.”
Going for gold
Outside of its graphite interests, Volt is also on the hunt for gold in Guinea, where it completed the first phase of an auger drilling program during the September quarter.
Ultimately, that program was expanded to cover more ground and extended the anomalies at the Kouroussa gold camp, as well as uncover new gold occurrences.
Specifically, the fresh anomalies include two major northwest-southeast trending structures in Konsolon and one large northwest-southeast trending anomaly in Nzima.
After quarter-end, the ASX-lister secured all assays from the auger campaign, which proved up four drilling targets for future exploration.