Mineral explorer and producer Volt Resources (ASX:VRC)
is set to acquire a 70 per cent stake in the Ukraine-based Zavalievsky group of companies (ZG Group), following the conclusion of its due diligence process.
Volt will now inform the vendors that the transaction is now unconditional and will finalise the acquisition in 10 days’ time.
The $9.8 million deal will effectively emphasise Volt’s status as one of the limited number of graphite producers on the Australian Stock Exchange. This is is expected to grant the $62 million company access to the ZG Group’s graphite development projects.
ZG Group currently operates a major graphite mine and processing operations in the vicinity of the Ukrainian capital of Kyiv. The Ukrainian company’s graphite mining and processing infrastructure have a development a history of nearly 90 years. The group is capable of delivering a high value eco-friendly purified 99.5 per cent total graphic carbon.
ZG Group intends to produce anode material used to manufacture lithium-ion batteries, as the group plans to become Europe’s only integrated mine and SPG producer
Volt’s interest in the group has also positioned the Australian graphite player at the heart of the booming EV market in Europe. The acquisition is considered a major milestone in Volt’s strategy to supply graphite to EU nations, as the company plans to optimise ZG Group’s existing customer base and supply network to reinforce its existing Tanzanian graphite assets
Shares in Volt Resources (ASX:VRC)
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