ENVIRONMENTAL APPROVAL RECEIVED FOR BUNYU GRAPHITE PROJECT Tanzanian focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or “the Company” is pleased to report the completion of another key milestone in the development of the Bunyu Graphite Project, with the Company’s wholly-owned subsidiary Volt Graphite Tanzania Ltd, having received the Environmental Impact Assessment (EIA) Certificate from the National Environment Management Council of Tanzania (NEMC). Importantly, the EIA certificate signed by the Honourable Minister of State in Vice President's Office for Union Affairs and Environment Hon. January Makamba, represents the final pre-requisite for the granting of Volt’s Mining Licence (ML) and one of the final remaining major milestones in terms of Government permitting for the Bunyu Graphite Project. The Bunyu Mining Licence Applications (MLA’s) were submitted to the Minister for Minerals in February 2018 (see ASX release dated 8 February 2018). Recently the Tanzanian Minerals Commission issued revised formats for the Integrity Pledge and Local Content Plan to be submitted with the Company’s MLA’s. These have been completed and lodged with the Commission. Once the EIA certificate is lodged with the Commission the Company expects the two ML’s to be granted soon thereafter. The Bunyu MLA’s and EIA certificate, along with the previously advised approval of the resettlement compensation under the Resettlement Action Plan (ASX announcement dated 30 April 2018), covers the area required for the Stage 1 development and Stage 2 Expansion Project.
Volt Resources CEO Trevor Matthews commented: “The June quarter represented an important period of consolidation for the Company, with the Stage 1 Feasibility Study now complete, which represents an important step forward in Volt’s strategy to become one of leading global producers of natural coarse flake graphite. “From a funding perspective, we are continuing to make good progress in regards to our US$40 million Tananian Note issue, which will provide the capital to fund the Stage 1 development of Bunyu. “With a number of key approvals and funding developments on the horizon, we expect the September quarter to be another highly productive period for the business as we move towards first production from Bunyu.”
Volt completes Stage 1 Feasibility Study post-quarter end for the flagship Bunyu Graphite Project in Tanzania. o
Stage 1 based on a mining and processing plant annual throughput rate of 400,000 tonnes of ore to produce on average 23,700tpa of graphite products positioning Volt as a meaningful participant in the global flake graphite market; o
Stage 1 financial analysis showed favourable NPV and IRR over a payback period of 4.4 years; o Pre-tax NPV (10%) of US$18.6M; o
Pre-tax IRR of 21.0%; o
EBITDA of US$93.6M over 7 year Stage 1 project period – average annual EBITDA of $US13.1M; o
Stage 1 FS indicates average FOB operating cost of US$664 per tonne and start-up capital cost estimate of US$31.8M; o
Key objective of Stage 1 development is to establish infrastructure and market position in support of the development of the significantly larger Stage 2 expansion project. •
Draft prospectus for the US$40 million Tanzanian Note Issue under review with the Tanzanian Capital Markets and Securities Authority (CMSA) and the Dar es Salaam Stock Exchange (DSE) •
$2,000,000 placement completed, funds to be deployed towards repaying the Convertible Loan Facility and working capital requirements at Bunyu Project •
Additional offtake agreements continue to be advanced following positive meetings with potential Chinese partners •
Resettlement Action Plan (RAP) compensation process completed • Environmental and Social Impact Sta
tement (ESIS) for Bunyu Graphite Project under review – key step towards Stage 1 development and production
is pleased to report the completion of another key milestone in the development of the Bunyu Graphite Project, with the Company’s wholly-owned subsidiary Volt Graphite Tanzania Ltd, having received the Environmental Impact Assessment (EIA) Certificate from the National Environment Management Council of Tanzania (NEMC). Importantly, the EIA certificate signed by the Honourable Minister of State in Vice President's Office for Union Affairs and Environment Hon. January Makamba, represents the final pre-requisite for the granting of Volt’s Mining Licence (ML) and one of the final remaining major milestones in terms of Government permitting for the Bunyu Graphite Project. The Bunyu Mining Licence Applications (MLA’s) were submitted to the Minister for Minerals in February 2018 (see ASX release dated 8 February 2018). Recently the Tanzanian Minerals Commission issued revised formats for the Integrity Pledge and Local Content Plan to be submitted with the Company’s MLA’s. These have been completed and lodged with the Commission. Once the EIA certificate is lodged with the Commission the Company expects the two ML’s to be granted soon thereafter. The Bunyu MLA’s and EIA certificate, along with the previously advised approval of the resettlement compensation under the Resettlement Action Plan (ASX announcement dated 30 April 2018), covers the area required for the Stage 1 development and Stage 2 Expansion Project.
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