Volt Resources Ltd (ASX:VRC) is well advanced with note issues and listings on the Dar es Salaam Stock Exchange (DSE) in Tanzania and the Stock Exchange of Mauritius (SEM) as it seeks to secure US$40 million for stage-I development of Bunyu Graphite Project in Tanzania.
Final note issue approvals for Tanzania and Mauritius are well advanced with positive discussions being held with regulators in both jurisdictions.
Positive feedback from SEM officials indicates that Volt Graphite Tanzania Plc's (VGT) prospectus is nearing its final approval.
Some minor delays have been experienced due to the high level of recent IPO activity on the exchange as well as the company being the first resource company to seek a note issue to be listed on the SEM.
SEM a growing capital market
The SEM is an active and rapidly growing capital market in the African region with more than 200 listed companies and a total market capitalisation of around US$12 billion with listed companies having raised more than US$6.5 billion to fund growth.
VGT’s application is for a Note Listing on the Development & Enterprise Market of the SEM and once approved will allow the company to quickly begin its funding raising process with SEM investors.
In respect to VGT’s Tanzanian Note Issue and listing on the Dar es Salaam Stock Exchange (“DSE”), company advisors met with senior officials of the Tanzanian Ministry of Minerals earlier this week to discuss key details and support for the proposed issue.
This meeting was held in addition to other processes of engagement with senior government officials.
The company is encouraged by the ongoing level of engagement with key officials in Tanzania and remains confident of receiving final approval to issue the note prospectus and list the issued notes on the DSE.
“Comfortable with market position”
Volt CEO Trevor Matthews said: “Volt’s board and management team note the recent commentary and market reports on specific sections of the graphite market, and we would like to advise our shareholders that we remain comfortable with Volt’s market position and the planned graphite products.
“Graphite products are sold under bilateral offtake agreements between the producer and end-user and following recent dialogue with our offtake partners we are very confident that demand for Bunyu graphite products remains robust.
“Based on market research and our own due diligence we have noted a softening in pricing for the final flake graphite material impacted by new supply and some slowing in demand from the battery sector, however, coarse flake graphite prices have remained relatively stable.
“We see the long-term outlook for graphite demand and pricing as very positive while the company is well placed to benefit from high average sale prices per tonne of product.”