Volt withdraws information

GRAPHITE contender Volt Resources has withdrawn an announcement it released earlier this week pertaining to possible production scenarios at its Namangale project in Tanzania.
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Michael Quinn

The withdrawal followed market authorities having concerns with Volt’s “reporting of a production target or forecast”.

The concerns with Volt are part of a wider crackdown begun by authorities last month on so-called “forward looking statements” made by companies in the resources sector.

In simple terms, it seems a situation is emerging whereby unless resource companies in the ASX have strong proof that what they are trying to do is eminently achievable, they must be publicly mute.

This would suggest the market landscape for juniors and investors is set to significantly change.

Certainly in terms of the process of fund raising, given proof of a project’s veracity often takes years to emerge on the back of ongoing exploration, testwork and economic studies – all of which doesn’t come cheap.

The question is, does this mean potential investors will be effectively asked to back juniors on little more than a ‘trust us, this project looks good’ basis?

Will the better resourced investment end of town enjoy even bigger advantages over the retail market?

Will a ‘black market’ of project information emerge in the background?