Why is the Volt Resources (ASX:VRC) share price surging 20% today?
Brooke Cooper | April 27, 2021 3:44pm |
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Volt Resources Ltd(ASX: VRC) shares are soaring today following news of the company’s latest acquisition. At the time of writing, the Volt share price is trading at 2.4 cents, 20% higher than yesterday’s close.
This comes after the company advised it has signed binding share purchase agreements to acquire 70% of European graphite producer, Zavalievsky Graphite (ZG).
Let’s look further into the graphite and gold explorer’s new acquisition.
Breaking into graphite
According to Volt, the acquisition will see it move from graphite explorer to graphite producer and place it in a more secure position than that of its peers by removing greenfield financing and development risks.
Volt Resources 70% acquisition of European graphite group will put it ahead of peers as a producer
Completion of the acquisition will position Volt to become a graphite producer without the usual greenfield financing and development risk. The Zavalievsky mine’s strategic location in the Ukraine has attracted interest from LIB cell manufacturers and major carmakers.
Volt Resources Ltd (ASX:VRC) (FRA:R8L) has signed binding share purchase agreements (SPAs) to acquire a 70% interest in the Ukraine-based Zavalievsky group of companies (ZG) for a total of US$7.7 million, payable in two instalments of US$3.8 million.
Completion of the acquisition will position Volt well ahead of most of its peer graphite companies by transforming it into a graphite producer without the usual greenfield financing and development risk.