ASX-listed graphite and battery materials developer Volt Resources has raised $1.6-million through a placement and a share purchase plan (SPP).
The placement was undertaken on the back of recent market news that China is set to tighten graphite export permits to protect its national security. China, which accounts for more than 90% of global refined graphite output will, therefore, be leaving a gap in the market for suppliers such as Volt.
Volt CEO and MD Prashant Chintawar says he is pleased with the vote of confidence from current and new institutional and sophisticated investors in what had been a $1.1-million placement. He is also satisfied with the company having provided eligible shareholders the opportunity to participate in the capital raising through a $500 000 SPP.
Chintawar himself subscribed for $40 000 worth of shares in the company, while executive chairperson Asimwe Kabunga subscribed for $150 000 worth of placement shares and nonexecutive director Jack Fazio for $10 000 worth of placement shares.
Volt will use the funds raised to advance its integrated graphite battery materials strategy, including the development of its downstream graphite anode business, its wholly-owned Bunyu project, in Tanzania, and its 70%-owned Zavalievsky graphite project, in Ukraine.
Volt completed a revised feasibility study for the Stage 1 development of the Bunyu graphite project in August, finding a throughput rate of 400 000 t/y of ore to produce an average 24 780 t/y of graphite products.
In turn, the Zavalievsky project has been operating since 1934 and is undergoing developments in lithium-ion battery production.
In terms of the downstream graphite anode business, Volt recently signed an agreement with American Energy Technologies, which is capable of commercially producing spheriodised surface coated battery-ready graphite for lithium-ion battery anodes.
The companies have worked together for three years in conducting test work on Volt’s graphite and will soon collaborate to apply for US Department of Energy funding towards a 7 500 t/y natural graphite anode plant.
