Tanzanian-focused flake graphite development company Volt Resources Limited (ASX: VRC) is aiming to raise a further $4.7 million after entering into an Option Underwriting Agreement with Empire Capital Partners Pty Ltd and Cove Capital Pty Ltd.
Under the agreement, Empire and Cove have agreed to act as joint underwriters to exercise any shortfall arising from Volt’s 233,648,431 listed options exercisable at $0.02, with an expiry date of 31 December 2017. The total amount to be raised from the exercise of the listed options and therefore the amount underwritten is approximately $4.7 million.
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The securing of joint underwriters for the Options Exercise, follows the recently completed Share Purchase Plan (SPP) and Top-Up Placement, which successfully raised a combined $3.2 million from sophisticated and professional investors.
Volt’s Chief Executive Officer, Trevor Matthews said the agreement is is a significant development for the business as it shows confidence in our development plans for the Bunyu Graphite Project and provides a clear and flexible funding pathway for Volt’s immediate future.
“Following the recent oversubscribed SPP and Top-Up placement, Volt now has a very healthy cash position which enables us to fast-track a very focused and active development program for the Bunyu Project, as we target the commencement of Stage 1 construction next year with development debt funding options well advanced,” Mr Matthews said.