"why would anyone give a Company $40 mill without a mining License, Regulatory approvals or a market for the mine product??"
Ever the pessimist and ever the know it all!
But despite what you think, VRC and Exotix are going ahead and marketing the bonds to prospective investors now!, after a very successful roadshow that convinced them to up the amount of money that they were seeking from US$30m to US$40m!!!
VRC and Exotix aren't asking anyone to give them US$40m at all! They are seeking some large investors, like pension funds, to buy bonds in the company that come with a high dividend return, and which will list on the DSE stock market. They are seeking a number of large investors to buy the bonds up to a total value of US $40m!
And the capital raising is due to be completed and the bonds issued in February, despite the company not having currently completed, or ticked off, a number of key milestones and agreements!
Obviously, VRC and Exotix believe that these milestones will be achieved! And it would appear that the investors are willing to take the risk that the milestones will happen, with the lure of a good fixed income dividend in place, and are prepared to buy the bonds!
Let’s hope the capital raising is a big success and the sooner that it is completed the better!!!
26 Oct 2017
"Volt Resources Ltd has appointed the experienced and well-qualified investment banking firm, Exotix Capital, to raise up to US$30 million via a Tanzanian Bond Issue.
Upon completion of the proposed raising, Volt will have the bonds listed on the Dar es Salaam Stock Exchange (DSE) in Tanzania. The estimated timeframe to complete a DSE listing is 8-12 weeks."
14 Dec 2017
Column 1
Column 2
0
Issuer
Volt Graphite Tanzania PLC (“Volt” or the “Issuer”)
Coupon will be payable in cashA Debt Service Reserve Account (“DSRA”) is to be withheld by the Issuer to service payments on the Notes for a period of twelve months
8
Payment Format
US Dollar Linked: Coupon payments to investors will be paid at the market exchange rate on the day of coupon payment
9
Governing Law
Tanzanian
10
Issuance Date
February 2018
TM:
“We are buoyed by the level of support received from the Exotix bond roadshow.”
“The appetite for investing in local resource projects in this market is evident by the positive response received to date and the increased sizing of the bond issue provides us with added financial flexibility as we target the successful Stage 1 development of our Bunyu Graphite Project over the next 12 months.”
“We look forward to scaling up our development activities at Bunyu into the new year, and we will provide shareholders with further funding and operational updates in due course.”
"Exotix have sized the debt transaction at US$40 million on the key terms set out below which will allow net project development and working capital funding of ~US$31 million after taking into account a Debt Service Reserve Account (DSRA) and costs of the issue. The facility interest and bond maturity payments can be serviced by projected project cash flows.
Importantly, the US$40m debt sizing allows meaningful participation from Tanzanian and Ugandan Pension Funds combined with other investment groups seeking fixed income investments."
"Exotix is a market leader in structured finance packages in Africa."
VRC Price at posting:
3.0¢ Sentiment: Hold Disclosure: Held
(20min delay)