Graphite producer Volt Resources (ASX:VRC) is currently negotiating commercial terms and conditions with a ‘large company’ regarding financing for its wholly owned Bunyu Graphite Project in Tanzania.
The $20.24 million market capitalisation company’s negotiations come amid China’s announcement that the Asian superpower will restrict graphite exports.
Volt reports since the announcement from China, its Bunyu Project has had increased interest, warranting an assessment of all options to deliver the best financing outcome.
Volt Resources Managing Director and Chief Executive Officer (CEO) Prashant Chintawar says securing financing for the project remains the company’s top priority.
As highlighted in the company’s latest quarterly report, due diligence is ongoing.
Volt has mined and transported 113 tonnes of ore from Bunyu to Dar es Salaam, where it has been tested by government officials who have issued export permits.
The company confirms some of the ore shall be shipped by 30 November to a competent graphite ore processing pilot plant where Volt personnel will oversee the ore processing. Delivery of the processed ore to customers is scheduled to occur before the end of the year.
Volt Resources is a critical minerals and battery material company focused on developing the Bunyu Project in Tanzania, which sits near critical infrastructure with sealed roads running through the project area and ready access to the deep-water port of Mtwara.
As of 30 September, Volt Resources had $1.129 million cash and cash equivalents at hand, although it completed a $400,000 share purchase plan (SPP) earlier this month (November) as part of a $1.132 million placement undertaken at the end of October.
Write to Adam Drought at Mining.com.au
Images: Volt Resources