- Volt Resources (VRC) acquires a 70 per cent interest in the Zavalievsky group of companies (ZG Group) for US$7.6 million (A$10.3 million)
- The company is funding the first instalment through a US$4 million (A$5.4 million) convertible securities agreement with SBC Global Investment Fund
- The second and final instalment comprises US$3.8 million (A$5.1 million) and will need to be paid within 12 months from the completion date
- Volt now has a majority interest in a graphite mine and processing facilities in Ukraine which will allow it to supply graphite to the growing European market
- Company shares are up 1.43 per cent to trade at 3.6 cents at 11:33 am AEST
Volt Resources (VRC) has completed the acquisition of a controlling 70 per cent interest in the Zavalievsky group of companies.
Over the past few months, Volt has been progressing the acquisition of the Ukraine-based Zavalievsky group of companies, also known as “ZG Group”.
The ZG Group owns a graphite mine and processing facilities near the town of Zavally, Ukraine, as well as a 79 per cent interest in 636 hectares of freehold land that houses the mine and processing facilities.
Volt Managing Director Trevor Matthews said the acquisition positioned the company years ahead of its peers in the graphite industry.
“Volt now has the potential to become a key market participant in the supply of graphite and battery anode materials into the growing European market with excellent access to other markets in the US and the Middle East,” he said.
The US$7.6 million (A$10.3 million) deal was partially funded through a US$4 million (A$5.4 million) convertible securities agreement that Volt entered into with SBC Global Investment Fund.
The convertible securities sum was drawn down in full to fund the first instalment of US$3.8 million (A$5.1 million). So far, the company has made an advance of US$150,000 (A$203,200) and the remaining US$3.65 million (A$4.94 million) will be paid on completion of the ZG Group acquisition.
The vendors agreed to defer the second and final instalment of the purchase price, being US$3.8 million (A$5.1 million), until 12 months from the completion date.
ZG Group plans to install a processing plant and equipment to begin producing spheronised purified graphite for the European lithium-ion battery anode market within the next 12 months.
Company shares were up 1.43 per cent to trade at 3.6 cents at 11:33 am AEST.