Volt Resources (ASX:VRC) raises $500,000 to bolster operations
Full story: https://grafa.com/news/business-news-volt-resources--asx-vrc--raises--500-000-to-bolster-operations-261653
Volt Resources announced a successful $500,000 capital raise by securing firm commitments via convertible notes from professional and sophisticated investors.
The funds are set to refinance an existing loan, support the company's US downstream operations, and be used for general working capital and corporate purposes.
The initiative aligns with Volt's fiscal discipline strategy that saw its net cash outflows significantly reduced from $9.5 million in FY23 to $4.6 million in FY24.
The June quarter further demonstrated cost reduction, with operating activities costing $469,000.
The company has also introduced additional alignment with shareholders by having board members take all director fees in equity, while the CEO will receive 50% of his monthly fee in equity.
"This raise will strengthen our balance sheet and support key operational initiatives," said CEO Trevor Matthews of Volt Resources.
Boutique investment management firm Peak Asset Management acted as the lead manager for the capital raise, which features convertible notes with a face value of $1, a 12% per annum coupon, and a 12-month term, effective from Aug. 31.
Volt aims to leverage these funds to further develop its Bunyu Graphite Project in Tanzania and expand its graphite and battery materials operations globally.
Volt Resources is a minerals and battery material company focused on the exploration and development of its wholly owned graphite and gold projects in Tanzania and Guinea, as well as its 70% interest in the Zavalievsky Graphite business in Ukraine.
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