Absolutely agree Winston, I put VRC on my watchlist after the...

Absolutely agree Winston,

I put VRC on my watchlist after the PFS in December suggesting an IRR of 87% and payback of just 1.4 years. Most mining companies in the other sectors would be proud of a IRR of 40%+.

Then the cash burn suggested that they will have to raise money. Also the Graphite sector is a race to production meaning for every 100 exploration on average one will make it to production. Maybe 2-3 in a good time.

Been trading at the 5-5.5cents mark and suddenly breached 5cents would indicate that the rumour of a capital raise is now in the air. Their market cap at the moment is approximately $AU40m, so a 15% raising at the current price would give the company $AU6m unless they call a shareholder vote. After broker fees of 6-8% (depending if there is underwriting) and other associated costs the company would get a nett of say $AU5.5m which would give it another 6 months basing on a $1m per month cash burn. Their cash burn may slow so another $5.5m may yield another 9 months.

Usually to raise money the company will have to time with some news announcements. They have done the PFS, and mentioned that they have "non-binding MOUs for 100kt/y from three China based end-users" so it would be safe to assume that an offtake agreement will be announced soon after a capital raising?

In their PFS they said "Volt’s Board endorses the Project Consultant’s recommendation to immediately progress the Namangale Project and undertake a Definitive Feasibility Study (“DFS”) in 2017, paving the way for finalising off-take agreements and project finance". I can deffinitely see Offtake coming first (before the DFS) and project financing afterwards when the DFS is complete or near completion.

I have accounts with various brokers in Perth, Melbourne and Sydney so hoping for an entry at the upcoming placement. If these guys somehow get a "strategic investor" to fund their working capital and will also fund their project development then I would not mind buying on market.

Usually placements are done at a 15-20% discount to the last traded price. Just going on 4.6cents it means the raising is at 3.7-3.9cents. Of course if the share price rebounds then this changes. Problem with many placements is that the share price tends to drift to the capital raising price.

On a technical and charting aspect (Since June 2016) the company, it suggest that the share price is still on a downward trajectory.