Volt acquires major stake in European graphite project

Volt on Tuesday told shareholders that it had inked share purchase agreements (SPAs) with the existing shareholders of ZG Group to acquire a 70% interest in each of the companies comprising the group, including Zavalievsky Graphite, Stone Found and Graphite Invest.

The ZG Group holds a 79% interest in 636 ha of land on which a graphite mine, processing plant and other facilities are located. The group currently has plans to install a processing plant and equipment to start producing spheronised purified graphite for the anode market within the next 12 months.

Under the SPA’s, Volt would acquire the 70% interest in the ZG Group for an aggregate purchase price of $7.6-million, which will be payable in two installments of $3.8-million each, with the first payment due at the completion of the transaction and the second six months thereafter.

The transaction was subject to Volt completing a favourable due diligence by May 14.

The company told shareholders on Tuesday that the acquisition of the ZG Group interest held a number of advantages, including its close proximity to Eastern European markets, plans to produce battery anode material by suing existing graphite production to become a fully integrated supplier, ZG Group’s range of graphite products and its high value ‘green’ purified 99.5% total graphitic carbon product.

Volt MD Trevor Matthews said that the acquisition of a controlling interest in the ZG Gropu positioned Volt years ahead of its peer graphite companies and without the usual development risks associated with a greenfield project.

“Following Volt’s recently announced membership of the European Battery Alliance providing Volt with access to business development opportunities and a business investment platform, the ZG Group acquisition has the potential to make Volt a key participant in the supply of graphite and battery anode material into the growing European market with excellent access to other markets in the US and Middle East.”