Walkabout Resources Ltd (ASX:WKT) has moved to full ownership of the Lindi Jumbo Graphite Project in Tanzania, after exercising its option to acquire the remaining 30% of the prospecting licence.
The contracted purchase price is US$1 million for the stake not held by Walkabout, and this transaction now terminates the joint venture between the vendor and the company in respect of the project mining licence area and PL9992/2014.
Walkabout is fast-tracking the development of Lindi Project to take advantage of forecast market conditions for flake graphite deposits with high ratios of large and jumbo flakes.
Trevor Benson, executive chairman, commented: "The purchase of the remaining 30% of the project will see a huge value-adding transaction into the company.
"The passing of this significant project milestone is indicative of the confidence that management has in the project and in the subsequent progression of events in Tanzania."
Market support
Walkabout shares have gained 6.5% to 16.5 cents in early trade, as investors show their support for the company's transition to 100% owner.
During the month of May, shares have doubled.
Next steps at Lindi
In regards to progress of the Lindi Jumbo Mining Licence application, the company noted that it remains highly encouraged by recent communications from the Ministry of Minerals of Tanzania.
Discussions in Dodoma held on 25 May 2018 between the company and the Ministry confirmed that licence applications were due for issue in large batches until the backlog has been depleted.
Forward plan
Lindi hosts a high reserve grade at 16.1% total graphitic carbon (TGC) for a 20 year mine life, with planned production of 40,000 tonnes per annum at a concentrate grade of 95-97% TGC.
The project benefits from a low opex of US$292 per tonne at mine gate and US$352 per tonne free on board.
Walkabout's plan is to fast track to development with a mining licence expected in mid-2018, and construction expected to start soon after.
The plant would then be operational in nine months, providing the opportunity for the first shipment in the March quarter 2019.