Volt signs funding deal to advance Bunyu graphite mine in Tanzania

Core Insights - Volt Resources has signed a binding term sheet with Unbounded Opportunities Fund (UOF) to advance the Bunyu graphite mine project in Tanzania, which is strategically located with access to key infrastructure [1][2] - The Bunyu project is recognized as the largest JORC-compliant mineral resource in Tanzania and one of the largest graphite deposits globally [2] Investment Agreement - The agreement outlines a framework for a significant equity investment by UOF, which includes a conditional $11.1 million (CI$9.22 million) investment in Volt's subsidiary, Volt Graphite Tanzania (VGT) [2][3] - Upon financial close, UOF will acquire a 62% stake in VGT, while Volt will retain 38% [3] Project Development - UOF will update a feasibility study for the Bunyu graphite project, with a capital expenditure of $37 million, targeting an annual production of 40,000 tonnes of graphite concentrate at 94% total graphitic carbon (TGC) [3] - Operating costs are estimated at $450 per tonne, with UOF agreeing to cover any capital cost overruns without altering its equity position [3][4] Operational Management - UOF will manage the finalization of mining, engineering, procurement, construction, and operation contracts, while Volt will secure offtake agreements and oversee local coordination [4][5] - The companies have a four-month period to meet conditions and finalize definitive documentation, or the term sheet will terminate [5] Strategic Importance - Volt's executive chairman highlighted the significance of this partnership for securing equity funding and project management support to facilitate the Bunyu graphite project's development [6] - UOF aims to address funding challenges due to low graphite prices by increasing annual concentrate production rates and achieving lower unit operating costs compared to the 2023 feasibility study [7]