Volt Resources: Strategic European Lithium Acquisition – Jadar North
18 November 2021
Highlights
- Acquisition of lithium licence applications in Serbia – Jadar North, Petlovaca and Ljig
- The transaction forms part of a larger strategy to position Volt as a multi-commodity battery minerals company
- Jadar North licence application over ground adjacent to Rio’s world-class Jadar lithium-borate project in Serbia
- Anomalous intersections of lithium and borate identified on Jadar North from limited historical diamond drilling
- Jadar basin 100% occupied by Rio and Asena – subject to Asena being granted the Jadar North licence
- Volt to acquire Serbian company Asena Investments d.o.o. which holds the rights to the three licence applications
- Subject to the licence applications being granted Phase 1 drilling program expected to commence in CY Q3 2022 across all three licences
Graphite producer and battery anode material developer Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to announce the acquisition of three licence applications that are considered to be prospective for lithium-borate mineralisation. The licence applications are in respect to a total area of 291km2, located in Serbia and are west and south-west of the Serbian capital, Belgrade. Volt is acquiring 100% of the issued share capital in Asena Investments d.o.o. Beograd-Stari grad (Asena), a Serbian company which holds the rights in relation to the three licence applications.
Volt Chairman, Asimwe Kabunga, commented: “The Asena transaction is an exciting opportunity for Volt to acquire lithium licences in highly prospective and under-explored areas in Serbia.
The transaction forms part of a larger strategy to position Volt to become a multi-commodity battery minerals company, with projects focussed on the two key minerals in the fast growing lithium-ion battery market – lithium and graphite.
With these assets located in Europe and relatively close to the USA market, Volt’s integrated battery minerals supply chain strategy continues to evolve and provides shareholders with significant long term growth opportunities.”
Volt Managing Director, Trevor Matthews, added: “The Jadar North licence application neighbours Rio’s large world class Jadar lithium-borate project. Limited exploration has already identified the presence of lithium and borate in the Jadar North licence application.
The area the subject of the Petlovaca and Ljig licence applications provide further exploration potential for lithium and borate discoveries similar to Jadar North. Volt looks forward to the licence applications being granted and to completing phase one exploration drilling on the three licences to test the lithium and borate mineralisation potential during the course of 2022.”
Figure 1: Serbian lithium licence application locations
Asena Licence Applications
Asena has applied for two licence applications (being the Jadar North and Ljig licence applications), and has the right to acquire a third licence (being the Petlovaca licence) if an application made for that Petlovaca licence is granted. These licence applications are summarised below.
Jadar North (area comprising 98.75 km2)
The area the subject of the Jadar North licence application covers a low gravity field in the north of the Jadar basin on the Pannonian plain, extending 10-25km west of Sabac in northern Serbia. If the Jadar North licence is granted to Asena, Rio Tinto and Asena alone will occupy 100% of the Jadar basin.
Asena has directly targeted the northern extent of the basin where Rio Tinto is developing the Jadar deposit (Mineral Resource comprises 55.2 Mt of Indicated Resource at 1.68% Li2O and 17.9% B2O3 with an additional 84.1 Mt of Inferred Resource at 1.84% Li2O and 12.6% B2O3).[i] The world’s second-largest miner in July 2021 committed US$2.4 billion to the Jadar lithium-borates project in Serbia, one of the largest greenfield lithium projects in development.
Extensive surface geochemical sampling, ground magnetic and magnetotelluric surveys have been undertaken with limited drilling conducted to date.
Figure 2: Jadar North licence application with historical drill hole locations
Historically five drill holes were drilled on land underlying or proximate to the Jadar North licence application area with three on the former Jadar West licence and two on the former Badanja licence. Four of these drill holes (RAR_001, RAR_002, RAR_004 and RAR_005) are within the Jadar North licence area.
The holes encountered anomalous values of which the highest-grade intercepts for both Li and B are tabulated as follows:
RAR_001: 5m (240m to 245m) at 451ppm Li and 111ppm B
RAR_002: 24m (496m to 520m) at 723ppm Li and 53ppm B
RAR_004: 3m (524m to 527m) at 642ppm Li and 56ppm B
RAR_005: 10m (335m to 345m) at 825ppm Li and 245ppm B.
Figure 3: Historical drill hole cross section
Though the Jadar basin is entirely buried, Jadar North gravity features indicate high prospectivity and similar potential to that of the lithium-borate mineralized Rio Tinto Jadar project (see figure 4 below).
Gravity surveys also model steep basement margins and abrupt changes in thickness within the basin which suggest faults. The correlation between drill holes can be seen where the centre of the gravity anomaly can be identified along with the centre of the sedimentary basin.
Figure 4: 2012 gravity field survey completed for the former Jadar West and Bandaja projects which now fall largely in Jadar North’s licence application area
Petlovaca (99.65 km2)
Extrapolating from the nearby Jadar basin, gravity-data indicates similar depths, thicknesses, environments and stratigraphic sequences. The Petlovaca licence area remains undrilled to date.
Ljig (92.31 km2)
The two holes drilled on the area the subject of the Ljig licence application to date penetrated lacustrine sediments, but indications of mineralisation was found only as pseudomorphs. However, there is a large area of mineralised basin sediments indicated by the nearby Valjevo borate deposit drilling.
Figure 5: Ljig licence application with historical drill hole locations
Mining-friendly Jurisdiction
The Serbian Government is committed to stimulating foreign mining investment, with 30 out of 70 exploration companies operating in Serbia being foreign companies.
Serbia has internationally well-ranked mining legislation and clear processes. Major mining companies operating or developing projects in Serbia include Zijin Mining, Mineco and Rio Tinto.
Skilled workforce
State-of-the-art universities and schools of mining in Belgrade and Bor.
Hydropower Available
Major Serbian powerline from Svornik hydroelectric plant to Loznica enables a renewable power source.
Excellent Infrastructure
Maintained, but little used, railways are located near the area the subject of the license applications. Major roads run along the river valleys where the ground the subject of these license applications are located and connect to nearby cities of Sabac and Loznica.
Transaction Details
In accordance with a share swap agreement (SSA) entered into between the Company and the sole holder of Asena’s share capital, Ropa Investments (Gibraltar) Limited (Seller), Volt has agreed to acquire all of the issued share capital in Asena.
Asena has made two of the licence applications referred to above, being in respect to Jadar North and Ljig. The Petlovaca licence application is held by another Serbian entity, Edelweiss Mineral Exploration d.o.o. Beograd–Novi Beograd (EME), a company controlled by the Seller. Subject to the Petlovaca licence being granted to EME, EME has agreed to transfer that licence to Asena. In connection with the transaction, Asena will also transfer two unrelated licences to EME which are not part of the acquisition.
Completion is scheduled to occur on or about 17 December 2021, at which point the Company will take the necessary steps to become registered as the sole holder of Asena’s share capital.
The consideration for the acquisition of Asena is the issue of 36,049,027 ordinary fully paid Volt shares (the Consideration Shares) to the Seller (or its nominee). The obligation to issue the Consideration Shares is subject to various conditions precedent, including:
- Asena becoming the registered holder of, and Volt being satisfied in relation to certain matters concerning, the Jadar North, Ljig and Petlovaca licences;
- Asena ceasing to hold any interest in the Excluded Licence Applications;
- Volt becoming the sole holder of Asena’s share capital; and
- Volt’s shareholders approving the issue of the Consideration Shares (Shareholder Approval) for the purposes of ASX Listing Rule 7.1 and all other purposes. Volt is required to use its reasonable endeavours to obtain Shareholder Approval by 17 February 2022.
Volt will have the option to terminate the SSA if any of the Jadar North, Ljig or Petlovaca licences have not been granted on or before 17 May 2022.
Volt and the Seller gave certain representations, warranties and indemnities to one another pursuant to the SSA, which are considered standard for a transaction of this nature.
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-ENDS-
Authorised for release by the board of Volt Resources Ltd
For further information please contact:
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Trevor Matthews Managing Director Tel: +61 8 9486 7788
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Alex Cowie Investor Relations NWR Communications Tel: + 61 412 952 610
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About Volt Resources Limited
Volt Resources Limited (“Volt”) is a graphite producer/developer and gold exploration company listed on the Australian Stock Exchange under the ASX code VRC. Volt has a 70% controlling interest in the Zavalievsky Graphite business in Ukraine. Zavalievsky is in close proximity to key markets with significant developments in LIB facilities planned to service the European based car makers and renewable energy sector. Zavalievsky benefits from an existing customer base and graphite product supply chains based on excellent transport infrastructure covering road, rail, river and sea freight combined with reliable grid power, ample potable ground water supply and good communications. Zavalievsky has current plans to install a processing plant and equipment in order to commence production of spheronised purified graphite (SPG) for the European LIB market within the next 12 months[ii].
Volt is also progressing the development of its large wholly-owned Bunyu Graphite Project in Tanzania, as well as gold exploration in Guinea leveraging the Company’s existing extensive networks in Africa.
The Bunyu Graphite Project is ideally located near to critical infrastructure with sealed roads running through the project area and ready access to the deep-water port of Mtwara 140km from the Project. In 2018, Volt reported the completion of the Feasibility Study (“FS”) into the Stage 1 development of the Bunyu Graphite Project. The Stage 1 development is based on a mining and processing plant annual throughput rate of 400,000 tonnes of ore to produce on average 23,700tpa of graphite products[iii]. A key objective of the Stage 1 development is to establish infrastructure and market position in support of the development of the significantly larger Stage 2 expansion project at Bunyu.
The Guinea Gold Projects comprise 6 permits in Guinea, West Africa having a total area of 348km. The Projects are located in the prolific Siguiri Basin which forms part of the richly mineralised West African Birimian Gold Belt.
Competent Person’s declaration:
The information in this announcement which relates to exploration results is based upon details compiled from the available documentation by Mrs Christine Standing, who is a Member of the of the Australian Institute of Geoscientists. Mrs Christine Standing is an employee of Optiro Pty Ltd and has sufficient experience which is relevant to the style of mineralisation and the deposit under consideration, and to the activity which she is undertaking to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Mrs Christine Standing confirms that the information included in this announcement in respect of the mineralisation at Jadar North, Ljig and Petlovaca is an accurate representation of the available data and studies.
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[i] Refer to Rio Tinto ASX announcement dated 10 December 2020 titled “Rio Tinto Declares Maiden Ore Reserve at Jadar”
[ii] Refer to Volt’s ASX announcements titled “Volt to Acquire European Graphite Business following Completion of Due Diligence” dated 14 May 2021 and “Completion of the ZG Group Transaction Following Execution of New Convertible Securities Facility” dated 26 July 2021.
[iii] Refer to Volt’s ASX announcement titled “Positive Stage 1 Feasibility Study Bunyu Graphite Project” dated 31 July 2018. The Company confirms that it is not aware of any new information or data that materially affects the information included in this document and that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed.
