PROJECT FINANCE

Walkabout raises US$3.1M to advance Lindi Jumbo

Walkabout Resources has started early works for its Lindi Jumbo graphite project in south eastern Tanzania after raising US$3.1 million via a share placement.

Staff reporter
Early-start works have begun at Walkabout's Lindi Jumbo project in Tanzania

Early-start works have begun at Walkabout's Lindi Jumbo project in Tanzania

It placed 13.5 million shares at A23c (US16.14c) per share, a 10% discount to the five-day volume weighted average price on May 3.

The funds have allowed it to start procuring initial equipment, securing funding to finalise resettlement action plan (RAP) payments, access ground, and start civil work on site.

Through the early-start programme, Walkabout plans to advance Lindi Jumbo's construction process while finalising and negotiating project funding.

"The primary benefits should include a reduction of the project construction timeline due to the period of manufacture of equipment in China," it said.

The company has signed an EPC contract with China's Jinpeng Mining and Machinery for an initial $1 million for the procurement and manufacture of long-lead items, completed a construction agreement with local earthworks contractor TNR to start primary clearing and preparation of plant site and road infrastructure, and mobilised selected construction equipment, surveyors and management to site.

Walkabout gained early access to site after finalising the $300,000 payment to community stakeholders as part of the resettlement action plan on "footprint affected" partial landholdings.

On the funding side, Walkabout said it was advancing two options to maximise the debt portion within the "servicing capacity of Lindi Jumbo".

"Both these options are currently in advanced stages of preparation and negotiation, however definitive timelines and terms cannot be announced at this time," the company said.

Walkabout's shares (ASX:WKT) jumped 11.54% in Australian trading Tuesday to A29c.

 

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