Volt Resources Ltd. has signed a Binding Term Sheet with Unbounded Opportunities Fund SPC (UOF) for a conditional US$11.1 million equity investment and joint project development of its Bunyu Graphite Project in Tanzania – a move that brings a new funding pathway and revised project parameters into focus.
The agreement sets out a framework for UOF to support a redesigned Stage 1 development targeting higher production rates, improved capital efficiency and lower unit operating costs than outlined in Volt’s 2023 feasibility update.
“This is a significant milestone for Volt to find a substantial partner to provide equity funding combined with project cost and management support to facilitate the development of the Bunyu Graphite Project,” Volt executive chairman Asimwe Kabunga said.
He added that UOF aims to “deliver increased annual concentrate production rates with efficient capital cost expenditure and lower unit operating costs”, helping Volt navigate current graphite market conditions.
UOF director Saleem Aziz Habib Al Balushi added: “We are confident in our joint ability to execute this project successfully and deliver outstanding results in Tanzania, for the mutual benefit of both groups’ stakeholders. We are also interested in Volt’s downstream graphite refining strategy and look forward to discussions to facilitate the development of this business.”
Funding and ownership structure
Once the equity investment is completed, the project will be held through subsidiary Volt Graphite Tanzania plc (VGT), of which UOF will own 62% and Volt 38%.
The Government of Tanzania will also receive a free carried interest (FCI) in the project via a new special purpose vehicle. This FCI will dilute both Volt and UOF on a pro-rata basis, although UOF will retain majority control.
Volt will now focus on securing project debt financing, targeting a 70% debt / 30% equity ratio for the planned US$37 million Stage 1 development.
Updated feasibility and operating parameters
Under the term sheet, UOF will prepare an updated feasibility study to support Volt’s lender discussions. Key parameters include:
- US$37 million project capital cost.
- 40,000 tonnes per annum of 94% TGC graphite concentrate.
- US$450 per tonne unit operating cost (FOB Mtwara).
Notably, UOF will fund any capital cost overruns without altering the agreed equity structure. However, its equity may be reduced if operating costs exceed the target by more than 10%, subject to fuel and power cost caps.
UOF will also take responsibility for finalising mining, EPC and O&M contracts and managing construction and operations. Volt will secure debt funding, offtake agreements, permits, land access and community obligations.
Conditions to financial close
For the transaction to complete, Volt must secure bankable offtake agreements covering at least 80% of annual production and non-recourse project debt financing for 70% of capital costs. UOF must deliver the updated feasibility work and finalise EPC and mining contracts.
Both parties must also obtain Special Economic Zone status for Bunyu and complete a government framework agreement and shareholder agreement.
The parties have four months, or longer if mutually agreed, to finalise the documents and satisfy conditions precedent.
Next steps
Volt and UOF will now move to:
- Finalise definitive shareholder and transaction documents.
- Advance lender engagement for project financing.
- Progress offtake negotiations for coarse and fine flake graphite.
- Deliver the updated feasibility study and development schedules.
- Complete permitting and regulatory processes in Tanzania.
Volt is also continuing to progress downstream graphite refining work in the United States, where a 2025 scoping study confirmed strong potential economics for staged refinery development.
