Following recent meetings with targeted investment groups in Tanzania, Uganda and Kenya, Volt Resources Ltd. is proceeding with the issue of US$40 million in structured debt funding for the first stage of development of its Bunyu graphite property in Tanzania.
The company is targeting annual production of 20,000 tonnes of graphite products during the operation's first stage, starting in late 2018 or early 2019.
The seven-year bonds are expected to be issued in February 2018 and will be listed on the Dar es Salaam Stock Exchange in Tanzania. Volt expects the bond prospectus and listing process to take eight to 12 weeks.
"Volt and Exotix have sized the debt transaction at US$40 million ... which will allow net project development and working capital funding of about US$31 million after taking into account a debt service reserve account and costs of the issue," the company said in its Dec. 14 release.
Volt engaged Exotix Capital in late October to raise up to US$30 million through a Tanzanian bond issue.
The Bunyu project hosts resources of 461 million tonnes at 4.9% total graphitic carbon for 22.6 million tonnes of contained graphite.
