PERTH (miningweekly.com) – ASX-listed Volt Resources will acquire a 70% interest in the Zavalievsky graphite business, in the Ukraine.

Volt on Tuesday told shareholders that it had inked share purchase agreements (SPAs) with the existing shareholders of ZG Group to acquire a 70% interest in each of the companies comprising the group, including Zavalievsky Graphite, Stone Found and Graphite Invest.

The ZG Group holds a 79% interest in 636 ha of land on which a graphite mine, processing plant and other facilities are located. The group currently has plans to install a processing plant and equipment to start producing spheronised purified graphite for the anode market within the next 12 months.

Under the SPA’s, Volt would acquire the 70% interest in the ZG Group for an aggregate purchase price of $7.6-million, which will be payable in two installments of $3.8-million each, with the first payment due at the completion of the transaction and the second six months thereafter.

The transaction was subject to Volt completing a favourable due diligence by May 14.

The company told shareholders on Tuesday that the acquisition of the ZG Group interest held a number of advantages, including its close proximity to Eastern European markets, plans to produce battery anode material by suing existing graphite production to become a fully integrated supplier, ZG Group’s range of graphite products and its high value ‘green’ purified 99.5% total graphitic carbon product.

Volt MD Trevor Matthews said that the acquisition of a controlling interest in the ZG Gropu positioned Volt years ahead of its peer graphite companies and without the usual development risks associated with a greenfield project.

“Following Volt’s recently announced membership of the European Battery Alliance providing Volt with access to business development opportunities and a business investment platform, the ZG Group acquisition has the potential to make Volt a key participant in the supply of graphite and battery anode material into the growing European market with excellent access to other markets in the US and Middle East.”