Tanzania: Miner to Raise Funds for Graphite Project

Australia Stock Exchange listed Volt Resources Limited, plans to issue $40 million corporate bond instrument at the Dar es Salaam Stock Exchange in Tanzania.

According to a company statement, the planned debt instrument will be used infunding development of the Bunyu graphite project in southern Tanzania.

In that regard, the company says it engaged Exotix Capital to undertake a Tanzanian Bond issue on the Dar es Salaam Stock Exchange (DSE) to raise the required funds for the development of Stage-1 of the Bunyu project. Trevor Matthews, Volt's chief executive, said "we are buoyed by the level of support received from the Exotix bond roadshow.

"The appetite for investing in local resources projects in this market is evident, and the increased sizing of the bond issue provides us with added financial flexibility as Bunyu is developed over the next 12 months."

The funding arrangement will allow net project development and working capital of circa $31 million.

He commented: "we are very grateful for those who took the time to meet with the company this week - including Ms Angellah Kairuki, who affirmed her commitment to foreign investment following her recent appointment as Tanzania's minister for Minerals." It is estimated that the facility interest and bond maturity payments can be serviced by the projected project cash flows.