Walkabout Resources Ltd (ASX:WKT) has launched a debt capital raising that aims to secure up to US$40 million in funding.
The debt to be issued will be in the form of secured five-year loan notes paying quarterly interest to holders, which will have a five-year term.
International investment bank Pareto Securities has been engaged by Walkabout to help facilitate the issue.
Notably, Pareto has experience with funding greenfield mining projects and structuring emerging market transactions.
Funds raised will be used to fund the development and construction of the Lindi Jumbo Graphite Project in Tanzania.
Further details on the capital raising will be released as it progresses.
Pareto have done their homework
Before Pareto committed to assisting on the debt capital raising, it coordinated an extensive due diligence process.
The process included the engagement of independent third-party advisors to assist with legal and technical due diligence, and a review of the graphite market and the marketing of the Lindi Jumbo graphite concentrate.
Early work at site already commenced
Early works have already commenced and the project is shovel ready to commence construction of the project and take advantage of the anticipated high demand for premium flake graphite concentrate.
Lindi hosts the highest graphite reserve grade for new graphite development projects in Africa of 5.5 million tonnes grading 17.9% total graphitic content (TGC).