Walkabout Resources (ASX:WKT) has raised A$704,000 through the placement of 7.6 million shares priced at $0.092.
The funds raised will be used to fund working capital and to conclude the definitive feasibility study (DFS) on the 70% owned Lindi Jumbo Graphite Project in Tanzania, scheduled for completion in February 2017.
The placement included a 1:1 free option with an exercise price of $0.138 expiring on 26th October 2017.
The DFS will build on the recently published scoping study, which forecast a pre-tax net present value (NPV) ranging from US$169 million to $US304 million from the proposed open pit mine.
Trevor Benson, chairman, commented: “Walkabout is very pleased with the strong support received for the placement.
“This is a very exciting time for the Company as we progress towards finalising a DFS and further progress discussions with potential off-take partners for the high grade Lindi Jumbo Graphite Project in Tanzania.”
Background
Walkabout most recently increased its high grade JORC graphite resource tonnage at Lindi by 165% to 29.6 million tonnes at 11.0% total graphitic content (TGC).
Lindi has confirmed the highest ratio of super jumbo (+500µm) and jumbo (+300µm) graphite flake size distributions in its East African peer group.
The project also has resource grades in the Measured category of up to three times that of other projects.
The company holds 70% of the project with an option to acquire 100% of the project for $1 million.
As a result of the forecast high growth in demand for natural large-flake graphite and the premium nature of the product produced during test work, the board elected to fast-track the project to production.
Walkabout is currently in discussion with various parties regarding potential off-take deals or funding opportunities for the project.
Recently completed scoping study
Walkabout recently received results confirming highly robust project economics through a scoping study for a proposed open pit mine and graphite processing plant at Lindi.
The study forecast capex of US$35 to US$40 million with a payback of less than two years – the second lowest amongst its peers and lowest in Tanzania.
The base case pre-tax net present value (NPV) is forecast to be US$169 million for 25,000 tonnes per annum production and the upside estimate is valued at US$304 million for 40,000 tonnes per annum production.