Volt Resources Ltd (ASX:VRC) has received firm commitments from professional and sophisticated investors for a placement to raise $2 million (before costs) through the issue of 181,818,181 fully paid ordinary shares at $0.011 per share.
The graphite producer and battery anode material developer’s chairman, Asimwe Kabunga, has provided his own confidence in the company, subscribing for 45,454,546 fully paid ordinary shares for an additional $500,000 on the same terms as the placement, subject to shareholder approval, for a total commitment of $2.5 million.
The issue price of $0.011 is a 44% discount to the 15-day VWAP of the trading price of Volt’s shares prior to the stock being placed in a trading halt on February 28, 2022.
“I am very pleased with the level of support from existing shareholders and new investors with this capital raising. Once again Volt’s chairman, Asimwe Kabunga, has shown his strong commitment to the company through his cornerstone participation in the capital raising,” managing director Trevor Matthews said.
“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.”
Work activities
The money raised will be utilised to advance activities at Volt’s projects including:
- Continue the development plans to become a battery graphite materials producer in the United States and Europe;
- Advance the Bunyu project development funding;
- Debt servicing;
- When appropriate, make further investment in the Zavalievsky Graphite mine and processing plant; and
- General working capital requirements.