Washington/Burkina Faso, March 15, 2010—IFC,
a member of the World Bank Group, today agreed to invest 4 million Canadian
dollars in Volta Resources to support a gold exploration project expected
to provide jobs and government revenues to Burkina Faso once a mine is
IFC’s investment will be used by Volta,
a Canadian-based mining company focused on gold exploration, to advance
the Kiaka Gold Project in southern Burkina Faso and for general corporate
working capital, including exploration in Mali and Ghana. IFC also
will work with Volta to ensure that exploration and any subsequent mine
development is done in an environmentally and socially sustainable manner.
“IFC understands the unique needs of
our industry. We are excited about beginning a long-term relationship
with their team and welcome them as a shareholder,” said Kevin Bullock,
Volta’s CEO and Director. “They are experienced mining investors
and we will benefit from their global expertise in environmental and social
Since an updated Mining Code was enacted
in 2003, Burkina Faso has seen significant investment from international
mining companies. Several mines are now in production and the country
currently ranks among the top-five gold producers in Western Africa after
Ghana, Mali, Guinea, and Sierra Leone.
The investment is part of IFC’s strategy
to facilitate the development of Burkina Faso’s mining industry. IFC recently
invested in Gryphon Minerals to help the company develop its Banfora Gold
“This investment continues our strategy
of supporting early-stage exploration companies with financing and advice,”
said William Bulmer, IFC Global Head for Mining. “We are pleased
to partner with Volta, which is committed to responsible mining exploration
and engagement with local communities.” He also noted that the development
of the Kiaka Gold Project has the potential to bring significant benefits
to Burkina Faso, including employment opportunities and government revenues.
IFC is the only international financial
institution exclusively focused on the private sector, the engine of sustainable
development in emerging markets. Along with IBRD, it is currently seeking
a capital increase to strengthen its ability to create opportunity for
the poor in developing countries—including by supporting a gold exploration
project expected to boost jobs and government revenues.
Legal Disclosure about IFC's Investment
IFC’s investment of approximately CAD$4
million in Volta Resources Inc. (“Volta”) will result in IFC acquiring
5,405,404 units issued by Volta at a price per unit of CAD$0.74. The units
comprise an aggregate of 5,405,404 common shares and 2,702,702 warrants,
each of which entitles the holder to purchase one common share of Volta
Resources Inc. at an exercise price of CAD$1.03 per common share for a
period of five years from the closing of the investment.
If, at any time while IFC holds warrants
of Volta, the common shares trade at a price that exceeds the warrant exercise
price multiplied by 150% on a 15 day volume weighted-average basis, Volta
can give notice accelerating the expiry date of IFC’s warrants to 30 days
following the date of the delivery of such notice to IFC.
Based on the 98,541,887 common shares
of Volta Resources Inc. currently outstanding, IFC will own 5.2% of the
outstanding common shares upon completion of the transaction and, assuming
the warrants are exercised in full, 7.6% of the outstanding common shares.
The transaction is expected to close
by the end of March, 2010.
IFC has been granted the option to make
further equity investments for units of Volta on the same basis as the
Private Placement for up to an aggregate of CAD$4 million in tranches of
not less than CAD$1 million for one year from the closing of the Private
Placement. The price of such optional investment by IFC will be determined
in accordance with a formula based on the maximum allowable discounts to
VWAP pursuant to the policies of the TSX and as set out in the Agreement.
IFC has also been granted a pre-emptive right to participate in certain
future issuances of Volta’s securities.
IFC is acquiring the units for investment
purposes as described above. IFC may, in the future, take such actions
in respect of its holdings as IFC deems appropriate in light of the circumstances
To obtain a copy of the report filed
with the Canadian securities regulatory authorities in respect of which
this news release relates, please contact Josef Skoldeberg at the phone
number or email address referred to above. IFC’s headquarters are located
at 2121 Pennsylvania Avenue, N.W., Washington, D.C., 20433, USA.
IFC, a member of the World Bank Group,
creates opportunity for people to escape poverty and improve their lives.
We foster sustainable economic growth in developing countries by supporting
private sector development, mobilizing private capital, and providing advisory
and risk mitigation services to businesses and governments. Our new investments
totaled $14.5 billion in fiscal 2009, helping channel capital into developing
countries during the financial crisis. For more information, visit www.ifc.org.