-1280x720-800x450.jpg)
- Graphite and gold explorer Volt Resources (VRC) has completed a share placement after receiving commitments to raise $3 million
- Company directors also subscribed for an additional $650,000 in shares, helping the placement reach $3.65 million
- Most placement shares will be issued to sophisticated and professional investors at 1.5 cents each within the next five working days
- Placement proceeds will fund debt facility repayments, ongoing gold exploration, due diligence on a potential acquisition and other project development
- Despite the successful capital raise, Volt Resources is down 10.53 per cent and trading at 1.7 cents per share
Graphite and gold explorer Volt Resources (VRC) has completed a share placement after receiving commitments to raise $3 million.
In addition, the company’s directors also subscribed for an extra $650,000 in shares, helping the placement raise $3.65 million. Volt’s Chairman, Asimwe Kabunga, personally subscribed for $600,000 of those shares, with the remaining directors subscribing for the other $50,000.
Most placement shares will be issued to sophisticated and professional investors at 1.5 cents each within the next five working days. However, the shares subscribed for by the company’s directors will be subject to shareholder approval and may be issued slightly later.
Proceeds from the placements will go towards funding a number of company goals. Some of the proceeds will fund the repayment of the Lars Bader debt facility, which will leave Volt Resources completely debt-free.
Some money will be utilised for the gold exploration programs which are already underway at the Guinea Gold Projects.
The company also intends to use some funds towards its proposed acquisition of a 70 per cent interest in the Zavalievsky Graphite business in Ukraine. These activities will include legal, financial, tax, technical and operational due diligence, as well as legal costs required to complete the binding share sale and purchase agreements.
Finally, some proceeds from the placement will provide working capital to advance development funding activities for Volt Resourcess Bunyu Graphite Project in south-east Tanzania.
Volt Resources’ Managing Director, Trevor Matthews, was pleased with the strong support from shareholders, especially the company’s Chairman.
“Importantly, this funding leaves the company debt-free and well-funded to advance the proposed acquisition of the Zavalievsky Graphite business along with our gold exploration programmes,” he added.
“Volt also continues to advance discussions with African development banks for the stage one development funding of our Bunyu Project,” he added.
Despite the successful capital raise, Volt Resources is down 10.53 per cent, trading at 1.7 cents per share at 10:48 am AEDT.