Volt told shareholders on Thursday that the acquisition of the majority stake in the Luiri Hill project continues the company’s progression in establishing a new gold business, while progressing the development of its Bunyu graphite project, in Tanzania.

Under the terms of the proposed agreement Volt would issue the two vendors, Cupriferous Resources and Bukimo Mining, with A$3.75-million in fully paid ordinary shares along with A$250 000 in cash within 30 days of settling the agreement.

The completion of the transaction was subject to a due diligence and the execution of a share sale agreement, as well as Volt shareholder approval.

“As a shareholder, I am excited about the opportunity for Volt to develop its world class graphite business in Tanzania, combined with the potential to become a gold producer in Zambia in the near future,” said chairperson Asimwe Kabunga.

“The board is working with the management team to realise our goal to transform Volt into a diversified mineral producer.”

MD Trevor Matthews noted that the Luiri Hill project was at an advanced stage, and has been supported by a number of studies, with over $20-million having been invested in the project area to date.

The project comprises one large-scale exploration licence and a mineral processing licence covering 31.38 km2, with the project holding significant stockpiles of gold-bearing ore, which Volt considered to be material in terms of providing a funding mechanism for the completion of studies to progress to a mining licence and to advance any remaining environmental and other approvals, and to transition the project to a development decision.

The company is seeking access to the site to physically inspect the stockpiles as part of its due diligence investigation.