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Volt Resources (ASX:VRC) to raise $5.75 million via share placement

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ASX:VRC      MCAP $24.95M
01 September 2021 10:30 (AEST)

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Volt Resources (VRC) has received firm commitments to raise $5.75 million to advance its programs in Europe, the US, Tanzania and Guinea.

Following yesterday’s trading halt, the company announced today that it has received excessive support for the raise which was originally targeting $4 million.

VRC received offers totalling $5.05 million and Chairman Asimwe Kabunga has subscribed for $700,000 in placement shares, subject to shareholder approval.

The raise is set to be completed through the placement of 230 million new fully paid ordinary shares at 2.5 cents each, marking a 15.5 per cent discount to the 15 day volume weighted average price at the close of trading prior to the trading halt.

The placement shares, excluding those subject to shareholder approval, are scheduled to be issued by Thursday, September 9.

With the money, Volt says it plans to commercialise the development of battery anode and other downstream graphite products in Europe and the United States.

Additionally, the funds will help VRC to drive the Eastern-European based Zavalievsky graphite business, as well as complete the company’s lithium ion battery cycling testwork on the graphite at its Bunyu project in Tanzania.

The fresh capital will also go towards corporate and general working costs.

Shares resumed trade today, dropping 3.3 per cent to 2.9 cents at 12:17 am AEST.

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