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Volt’s sweet deal
2 minute read
Volt Resources (ASX:VRC) has bagged the services of Edward Sugar-backed EAS Advisors to help tap investors in North America.
Sugar has a track record of investing in early-stage ASX-listed resources plays, having participated in deals worth a cumulative $US3.5 billion ($A4.8 billion) to date.
He was involved in the early stages of getting funding for Fortescue Metals Group (ASX:FMG) and also played a role in the rise of LNG Limited (ASX:LNG) as it built buzz over its Magnolia project in the US.
VRC’s graphite project in Tanzania is at a relatively early stage, but had done enough work to attract the attention of Sugar.
“Volt is at an interesting stage having achieved a great deal to date with regard to the discovery and development of its large resource,” he was quoted by VRC as saying last week.
“We believe that Volt’s Namangale project will be of strong interest to the US investment community, particularly given the strong, local investor participation in Tanzania, the well-understood shallow ore body and the location of the resource in relation to required infrastructure.”
EAS will mainly be paid in options, with it able to grab 4.2 million options when VRC’s share price hits 6c, 8c, 10c, and 12c.
The options will be exercisable at any time before April 30, 2019.
More on Volt Resources’ Namangale project
The project is one of the largest in Tanzania, with a JORC compliant inferred resource of 179 million tonnes at an average grade of 5.1% total graphitic content.
MOZ’s Tanzania operations are located close to the deep-water port of Mtwara, 140km from the Namangale Prospect.
Sealed roads and high-voltage are available across its prospects, connecting MOZ to export routes internationally.
Mtwara Port has a capacity of 400,000 metric tonnes per year and could handle up to 750,000 metric tonnes per year with the same number of berths if additional equipment is put in place for handling containerised traffic.
The port is currently heavily underutilised, with approximately 34% of its total capacity currently in use.