JOHANNESBURG (miningweekly.com) – Tanzania-focused flake graphite development company Volt Resources said on Thursday that it would proceed with the issue of $40-million structured debt funding to complete the Stage 1 development of its Bunyu graphite project.
The company has engaged Exotix Capital to undertake a Tanzania bond issue to raise the required funding for the development of Stage 1, which is targeting production of 20 000 t/y of graphite products starting in late 2018 or early 2019.
Volt said that Exotix had recommended a formal bond prospectus process and the listing of the bonds on the Dar es Salaam Stock Exchange. After taking into account costs, Volt would be left with $31-million in net project development and working capital funding.
The $40-million debt sizing allows for meaningful participation from Tanzania and Uganda pension funds, the project development company said.
The Bunyu graphite project will be producing graphite suitable for battery anode production, flame retardant building materials, the developing graphene industry and traditional markets, including refractories.