Volt Resources (ASX: VRC) has announced a funding agreement with international financiers for the development of the Bunyu graphite mine and processing plant in Tanzania.
Under the deal, the Cayman Islands-based Unbounded Opportunities Fund (UOF) has committed to an equity investment of approximately $17.6 million (US$11.1m).
UOF, which has more than $1 billion in funds under management, will compile a revised feasibility study for the Stage 1 Bunyu project.
The transaction will give UOF 62% equity interest in the Volt Graphite Tanzania (VGT) joint venture and Volt will retain the remaining 38%, with UOF holding majority representation in VGT through new board and management appointments.
Volt will retain responsibility for arranging project debt funding at a gearing ratio of 70% debt to 30% equity, along with securing bankable coarse and fine flake graphite offtake agreements.
Increased Annual Production
Volt executive chair Asimwe Kabunga said the agreement was a significant milestone for the company and the project.
“To overcome the funding issues arising from relatively low graphite prices, UOF is confident it can deliver increased annual concentrate production rates with efficient capital cost expenditure and lower unit operating costs when compared with the 2023 feasibility study,” he said.
UOF director Saleem Aziz Habib Al Balushi expressed confidence in the JV’s ability to make the project a success for the mutual benefit of both sets of shareholders.
“We are also interested in Volt’s downstream graphite refining strategy and look forward to discussions to facilitate the development of this business,” he added.
UOF intends to prepare a revised feasibity study for Bunyu with parameters including annual 94% graphite concentrate production of 40,000 tonnes at an average cost of US$450/t.
Alabama HPG Project Study
Volt commenced a definitive feasibility study (DFS) earlier this month for the high purity graphite (HPG) stage at its Alabama graphite refinery in the US, with the study scheduled for completion in the June 2026 quarter.
The DFS will examine a two-stage development using proven Ukraine refinery process for the HPG production and Volt’s patent-pending purification technology for the second stage production of ultra-HPG.
The plant will be able to process concentrate from the Bunyu graphite project once it becomes operational, as well as graphite from operating mines in Africa and other third-party producers.
Volt has appointed Wave International as lead consultant for the study, leveraging its extensive graphite purification expertise and US critical minerals refining experience.
