East African Mining News Unearthing Mining Opportunities in East Africa
Related Articles
Volt Resources Ltd (ASX: VRC, OTC: VLTRF) has entered a strategic partnership with Unbounded Opportunities Fund SPC (UOF), securing a conditional US$11.1 million equity investment to fast-track the development of its Bunyu Graphite Project in Tanzania. The agreement ushers in a redesigned Stage 1 development aimed at higher production rates, improved capital efficiency and lower operating costs, reflecting Volt’s ambition to strengthen its position in the global graphite market.
“This partnership is a pivotal step for Volt, bringing both funding and management expertise to accelerate Bunyu’s development,” said Asimwe Kabunga, Executive Chairman at Volt. In addition, the UOF Director Saleem Aziz Habib Al Balushi noted, “We are confident in our joint ability to deliver outstanding results in Tanzania and are particularly interested in Volt’s downstream graphite refining strategy.”
The project will be held through Volt Graphite Tanzania plc (VGT), with UOF holding a 62% stake and Volt 38%, while the Tanzanian government will receive a free carried interest, maintaining UOF’s majority control. Volt will now focus on securing project debt financing, targeting a 70% debt to 30% equity ratio for the US$37 million Stage 1 development. UOF will prepare an updated feasibility study supporting lender discussions, targeting 40,000 tonnes per annum of 94% TGC graphite concentrate at a unit operating cost of US$450 per tonne (FOB Mtwara).
The fund will also manage mining, EPC and operations, while Volt secures offtake agreements, permits, land access, and community obligations. UOF will cover any capital cost overruns, though its equity may be reduced if operating costs exceed targets by more than 10%, subject to fuel and power cost caps. Completion of the transaction depends on Volt securing bankable offtake agreements covering at least 80% of annual production, finalising non-recourse project debt financing and obtaining Special Economic Zone status for Bunyu. Both parties must also complete shareholder and government agreements within a four-month window, extendable if mutually agreed.
The collaboration positions Bunyu for faster, more efficient development and supports Volt’s broader vision of advancing downstream graphite refining including in the United States, where a 2025 scoping study confirmed strong economics for staged refinery expansion. The partnership underscores the growing importance of strategic equity alliances in delivering sustainable and competitive mineral projects across Africa.
