The company said this morning that it was looking to tap African capital markets to support the first stage development of its 20,000 tonne per annum Bunyu graphite project at the earlier end of its 12-18 month development window.

The junior has appointed investment banking firm Exotix Capital to raise the funds from African institutions, family offices and regional credit funds, primarily in the Tanzanian, Kenyan and Ugandan capital markets.

Exotix has been in business since 1999 and specialises in developing economies.

Volt chairman Asimwe Kabunga said Exotix had an extensive network of East African investors and a comprehensive strategy to access local parties with “a strong appetite for large-scale resource projects such as Bunyu”.

Bunyu has Tanzania’s largest resource of 461Mt at 4.9% total graphitic carbon, and while not as large overall as Syrah Resource’s Balama project in neighbouring Mozambique, it has the largest reserves of its peers at more than 120Mt at 4.4% TGC, making it another vital source of flake graphite for global markets.

Volt said the decision to pursue a bond was to ensure that project development funding would not lead to massive equity dilution.

Last month it announced a share placement, underwritten by Patersons and sub-underwritten by Kabunga and non-executive director Matt Bull, to raise up to A$1.5 million.

The placement is set to close later today and should top up what was just $102,000 in cash at the end of June.

Volt is targeting production for both the building material and battery markets, and despite decent changes to the Tanzanian mining legislation has reported progress with its environmental and mining licence approvals, and for off stake agreements with further potential Chinese customers.

The company is aiming to be one of the top three graphite suppliers in the world by 2020 when analysts estimate the demand for flake graphite will exceed 500,000tpa. 

Volt shares were last traded at 2.3c, valuing the company at $22.47 million.