Volt Resources (ASX:VRC) raises $10m in oversubscribed placement

• Volt Resources (VRC) receives firm commitments to raise $10 million through a share placement — double the amount it initially hoped to raise
• The battery materials company received over $22 million worth of applications, which it says is “highly encouraging and reflective of the rare opportunity Volt presents”
• Volt will issue around 555.6 million shares at 1.8 cents to raise the funds, and each share will come with one listed option, subject to shareholder approval
• Further, Volt’s Chairman, Asimwe Kabunga, has committed to subscribe for $1 million of new shares, and the company’s Managing Director will buy $50,000 worth of shares
• The graphite producer will use the money to fast-track feasibility studies and battery anode material production for its Bunyu and Zavalievsky projects
• VRC shares are down 5.26 per cent to trade at 1.8 cents at 3:19 pm AEDT

Volt Resources (VRC) has received commitments from private investors to raise $10 million through a share placement — double the amount it initially hoped to raise.

The company sought $5 million, but the placement was heavily oversubscribed, with total applications exceeding $22 million.

All up, the graphite producer and battery materials developer will now issue roughly 555.6 million shares at 1.8 cents to raise the funds, representing a 5.3-per-cent-discount to its last closing price.

Subject to shareholder approval, investors will also receive one listed option for every share subscribed for. The options may be exercised at 2.4 cents until June 30, 2025.

Additionally, Volt Chairman Asimwe Kabunga has committed to subscribe for up to $1 million of new shares, and two other directors will buy a combined $80,000 of shares. This is also subject to shareholder approval.

“The Volt board had hoped to raise $5 million, so to receive applications for over $22 million from existing shareholders, new institutions and sophisticated investors has been highly encouraging, and we believe reflective of the rare opportunity that Volt presents investors,” Managing Director Trevor Matthews said.

“This placement comes at an exciting time for the company as Zavalievsky production regains momentum, and valuable downstream initiatives continue to accelerate as the market starts to secure graphite sources for the rapidly growing battery sector,” he added.

Volt Resources will use the funds to complete a feasibility study for a lithium-ion battery anode production facility, ongoing production, an updated feasibility study for the Bunyu graphite project, achieving steady production at the Zavalievsky mine, and continuing offtake discussions.

VRC shares were down 5.26 per cent to trade at 1.8 cents at 3:19 pm AEDT.