Walkabout Resources is a mineral exploration company. The firm’s principal activities include exploration and development of resources and energy assets located in Australia, Botswana and Tanzania. It operates through the following segments: Graphite, Coal, Lithium, Copper, and Corporate. The Graphite segment includes assets and all related expenses to the tenements in Tanzania. The Coal segment handles the acquisition cost of exploration licenses and all expenses related to the tenements in Botswana and Tanzania. The Lithium segment manages expenses from tenements in Tanzania and Namibia. The Copper segment is related to the expenses of tenements in Tanzania. The Corporate segment includes treasury, corporate and regulatory expenses. The company’s projects include Lindi Jumbo Graphite, Eureka Lithium, and United Kingdom.
Today, Walkabout Resources announced a major milestone in its progress towards construction of the Lindi Jumbo Graphite Mine in Tanzania securing a US$20 million Debt Funding Facility (Facility) with Tanzanian Bank CRDB.
Lindi Jumbo has an estimated capital cost of US$32m (including working capital and financing costs) meaning the facility will meet 62.5% of the project cost. Lindi Jumbo has already expended US$3.6m on construction activities at the site and on long-lead manufacturing items.
It wasn’t just that management that was thrilled, it was the markets as well. WKT shares rose 41% in trading earlier today. Allan Mulligan, Managing Director of Walkabout Resources added “We are delighted to have CRDB Bank as the Lindi Jumbo project financing partner. We were very keen to meet not just the requirements of local content but the spirit as well and the CRDB facility accomplishes this. We have persisted with negotiating this funding facility for more than a year. The relationship benefits Tanzania in growing its services sector and benefits our company, as the cost of funding reduces significantly in terms of sovereign risk premiums. The provision of this significant debt package for Lindi unlocks the final milestone in project development and construction efforts at the mine site can commence as soon as formal documents have been executed. The Project has assessed any potential Covid delays and we have introduced suitable travel and safety systems to mitigate risk.This will represent the first serious construction effort of a mining project in Tanzania since the 2017 Mining Act amendments.”
After the surge, WKT shares ended at $0.255 a share.
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