Walkabout Resources Ltd (ASX:WKT) will undertake a 1:4 rights issue priced at $0.004 to raise up to $2 million for its 70% owned Lindi Jumbo Graphite Project in Tanzania.
Each share applied for will come with one free attaching unlisted option exercisable at $0.006, expiring in 12 months.
Funds will be used for exploration and evaluation work at Lindi and for the completion of the ongoing definitive feasibility study.
Allan Mulligan, managing director, commented: “Project development at Lindi Jumbo is going well.
“The accelerated project plan is on track and our focus is now on introducing the premium Lindi Jumbo concentrate product to potential buyers.
“We believe this capital raising is well priced for shareholders and the free attached option is an incentive for staying with the company while we progress the project and transform the
company from an explorer to a developer.”
It is proposed that the prospectus for the offer will be mailed to shareholders on 10 October 2016 and that the closing date will be 19 October 2016.
Lindi is the highest grade graphite deposit discovered in Tanzania.
Walkabout is aiming to enter production in 2017 through a surface mining and processing operation at the site.
Recent test work at Lindi produced a super jumbo, high margin graphite concentrate containing up to 25.7% super jumbo flakes and grades up to 98.85% total graphitic content.
These results indicate a basket price for Lindi concentrate valued at US$1,529 to US$2,567.
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