Company
ASX:WKT
Normal 0 false false false EN-AU X-NONE X-NONE MicrosoftInternetExplorer4 Walkabout Resources Ltd (ASX:WKT) is focused on the construction of its high-grade, high-margin Lindi Jumbo graphite project, based in Tanzania.
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Plans are well advanced to begin drilling and following the successful ground geophysical program, further ground geophysics and close-spaced soil sampling is planned along strike of the original target area.
The company has been negotiating with a preferred African based bank in regard to securing a binding term sheet.
The Barrick-Tanzania deal sets a new government-endorsed standard and establishes a workable model for foreign direct investment in mining in the East African country.
Options that expired 31 December 2019 have been exercised providing a cash injection for the company.
The funding process has involved management presentations to global investors and subsequent due diligence.
Non-executive director Michael Elliott’s participation in a placement has been approved by shareholders.
Walkabout aims to raise the capital through the issue of secured five-year loan notes, which will pay the holders quarterly interest.
The shareholder funding package could also bring in $9 million of funding from the exercise of options.
Due diligence activities related to project funding are nearing completion.
Funding options are being negotiated with related due diligence reviews already underway.
Investments and investor services
The 16th event features more than 70 presentations over 2.5 days as well as 70 exhibiting companies.
The company completed the $3.1 million placement at an issue price of 23 cents a share.
The company’s securities will remain in a trading halt until the beginning of trade on May 7, 2019, or until an announcement is made to the market.
This month's offtake and marketing agreements come after a 'derisking' update to its DFS.
The deal further supports a future for the Lindi Jumbo Graphite Project in southeast Tanzania.
The term sheet secures the sale of an additional 25% of planned annual production for the first three years with Qingdao Risingdawn Graphite Technology Co.
