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Volt Resources (ASX:VRC) restructures board, manages expenditure

Materials
ASX:VRC      MCAP $18.71M
01 May 2020 15:00 (AEST)
Volt Resources (ASX:VRC) - Managing Director, Trevor Matthews

Sourced: Business News

Graphite developer Volt Resources (VRC) has restructured its board and implemented cost reduction measures.

These changes align with Volt’s focus on securing funding for the stage one development of the Bunyu Graphite Project in Tanzania.

The stage one development is based on a mining and processing plant annual throughput rate of 400,000 tonnes of ore to produce roughly 23,700 tonnes of graphite products every year.

The main goal of this stage is to establish infrastructure to support the development of a future stage two expansion project at Bunyu.

Board and management

Board changes include Non-executive Director Stephen Hunt resigning, while current CEO, Trevor Matthews, has been appointed as Managing Director effective immediately.

“Stephen has been a significant contributor to Volt’s success in his earlier role as Executive Chairman and later as a Non-executive Director,” Chairman Asimwe Kabunga said.

“His marketing experience and commitment to the Bunyu graphite project were instrumental in the company now advancing with its project development funding process,” Asimwe added.

“The board is pleased that Trevor has accepted the Managing Director role and we look forward to the continuation of our development funding efforts,” he continued.

Combined with the board changes, director fees will be immediately reduced, with the Chairman fee reduced to $3000 per month and the Non-executive Director fee reduced to $2000 per month.

The Managing Director will be engaged under a consultancy agreement and will be paid a fixed monthly fee of $3000 per month.

Cost reductions

In the past 12 months, Volt has moved from a commercial office lease to a serviced office combined with remote working. Many Perth staff have been made redundant with services outsourced and Tanzanian employees also faced redundancy in January and February this year.

Additionally, Volt has reduced the use of consultants for various corporate and administration activities.

Volt is trading steady for 0.5 cents each at 12:42 pm AEST.

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