PERTH (miningweekly.com) – US-based Sigur Minerals has taken a 19.9% shareholding in junior coal developer Walkabout Resources, injecting some A$1.7-million into the ASX-listed company.
Walkabout on Wednesday told shareholders that the company would seek approval to place some 198-million shares, at an issue price of 0.5c each, with Sigur to raise A$990 000.
Sigur would advance a further A$150 000 to Walkabout as an interest-free loan, which would subsequently convert to shares and would form part of the share subscription. In the event that shareholder approval was not obtained, the loan would be repayable within 30 days of the date of termination.
“This investment and new relationship comes at exactly the right time for Walkabout and the Takatokwane thermal coal project [in Botswana]," said Walkabout MD Allan Mulligan.
“We envisage the combined team maintaining the focus on developing the project and also, through leveraging on the extensive network contacts of Sigur, seeking out new opportunities within the South African junior coal sector and in delivering thermal coal to Eskom.”
Walkabout recently estimated that the Takatokwane mine, in Botswana, would cost some $767-million to develop and, based on a 12-million-tonne-a-year output, the mine had an estimated net present value of $850-million and an internal rate of return of 14%.