Batteries play Volt Resources joins the raisers

Revamped ASX-listed batteries play Volt Resources will be pitching equity investors for fresh funds on Monday.

Fresh off a deal to acquire control of a Ukrainian company, the company’s expected to raise $4 million at 2.5¢ to restock its balance sheet and fast track plans to supply lithium- ion battery cells into Europe.

Street Talk. Louie Douvis

The equity raising is expected to be done as a placement of new shares via boutique firm Peak Asset Management. Volt Resources shares last traded at 3¢, valuing the company at $73.2 million on a market capitalisation basis.

It’s expected to be pitched as arguably the cheapest way to play the European lithium-ion battery cells market on the ASX, with shares in rival players including Vulcan Energy, Neometals and Ecograf all running hard this year.

Key to Volt Resources’ future is making the most of its Zavalievsky Group of companies, which it acquired in July. The Zavalievsky graphite business is within close proximity to key battery manufacturers and European carmakers.

The mooted deal also comes after the company revealed it was sitting on only $245,000 cash at the end of the June quarter. In response to a query from the ASX, Volt Resources said it was sourcing funding proposals to help meet its working capital requirements and was assessing options including an equity raising.

Should it proceed with the raising as expected, it would join other batteries plays including the likes of Jervois Mining, Vulcan Energy, Lithium Power International, European Lithium, Li-S Energy (an IPO), Galan Lithium, Core Lithium, Liontown Resources and Sayona Mining, which have all cashed in on investor sentiment and raised fresh equity this year.