Volt Resources Ltd (ASX:VRC) has received firm commitments to raise $2 million in a share placement with the intention of recommencing graphite production in Ukraine and advancing downstream processing initiatives.
Professional and sophisticated investors have shown their confidence in the company and its graphite strategy by supporting the placement.
These investors will be issued 107.2 million fully paid ordinary shares at $0.016 per share to raise $1.716 million along with one option for every two shares subscribed for.
As a result, there will be 53.625 million unlisted options issued with an exercise price of 2.4 cents and a maturity date 36 months from the date of issue.
Cornerstone participation
Volt’s chairman Asimwe Kabunga has also subscribed for 17.75 million fully paid ordinary shares and 8.875 million unlisted options for an additional A$284,000 on the same terms as the placement, subject to shareholder approval.
This takes the total placement commitment to $2.0 million.
“Pleased with strong support”
Managing director Trevor Matthews said “The Volt board is pleased with the strong support from existing shareholders and new investors with this capital raising.
"Volt’s chairman Asimwe Kabunga has shown his continuing commitment to the company and its plans through his cornerstone participation in the capital raising."
Use of funds
Placement proceeds will be utilised to advance the company’s integrated graphite battery materials plans. These include:
- Working capital for the recommencement of production at the Zavalievsky graphite mine and processing plant in Ukraine and the export of graphite products to customers in Europe.
- Continuing production of lithium-ion battery anode, alkaline and lead acid battery product samples for customer test-work and offtake discussions.
- Preparation of feasibility studies for a small-scale CSPG (battery anode material) production facility in the US and a larger CSPG facility that can be used as a template design for facilities in the US (such as the Energy Supply Developers Super site) and Europe.
- Update of the Bunyu Stage 1 Feasibility Study focused on capital and operating costs, and approvals.
- Ongoing business development, Bunyu graphite offtakes and Bunyu financing discussions and negotiations.
- Working capital costs.
“Positive step forward”
"The decision to recommence the graphite mine and processing operations in western Ukraine is a positive step forward for the Zavalievsky management and staff, local communities and businesses that depend on the graphite business for their livelihoods,” Matthews said.
"Volt has a lot of activities in progress as we work to develop the integrated graphite material mine-to-cell-maker supply chain, and I look forward to providing further updates to existing and new shareholders in due course.”
Placement details
The company will issue 107.25 million placement shares using its placement capacity under ASX Listing Rule 7.1A and the 53.625 million placement options using the placement capacity under ASX Listing Rule 7.1.
Volt will seek shareholder approval for the participation of Asimwe Kabunga for a total of 17.75 million placement shares and 8.875 million placement options.
The issue price of $0.016 per placement share is a 5.9% discount to the trading price of the company's shares prior to the stock being placed in a Trading Halt on June 28, 2022.
Peak Asset Management acted as the lead manager to the placement.