Tanzania-focused flake graphite development company Volt Resources has secured $1-million in working capital funding for the development of its Bunyu graphite project, in Tanzania.
The funding includes $300 000 raised through the placement of just over 20.8-million shares at 2.1c a share, and a $700 000 loan facility entered into with investor Lars Bader.
Bader will be issued 25.5-million options with an exercise price of $0.04 a share with an 18-month maturity.
Volt continues to simultaneously advance several funding strategies to secure the $40-million required to complete the Stage 1 development of the Bunyu project.
Current strategies being pursued include a note issue on the Dar es Salaam Stock Exchange, and a similar bond issue on the Stock Exchange of Mauritius.
Volt CEO Trevor Matthews says this latest funding support from a sophisticated European investor shows confidence in the company’s ability to not only close the development funding, but also demonstrates the long-term underlying value in the Bunyu project.
“With this interim funding now secured, we have the requisite funding flexibility to finalise the Tanzanian note offer approval as part of the development funding process,” he adds.