PERTH (miningweekly.com) – Graphite developer Walkabout Resources has secured a A$5-million short-term bridging debt facility from some investors and a company director to meet due diligence and operating costs as the company continues the development of its Lindi Jumbo project, in Tanzania, and finalizes its debt-based project funding facility.
The funding will be advanced in two tranches, with the first A$2.96-million to be provided within five business days, and the balance within five days after the receipt of shareholder approval for the ratification and issue of bridge options and the possible conversion of the bridge debt into shares.
The bridging loan facility will have an interest rate of 14% a year and will run until the end of December this year. If Walkabout is unable to repay the financing through proceeds from the exercise of options, the remaining debt will be satisfied through a share issue.
Walkabout chairperson Trevor Benson on Wednesday said that the financial support from shareholders would enable the company to maintain momentum towards the development of the Lindi Jumbo project, and to finalise project financing.
“The bridging loan, through the exercise of the options, provides a substantial component of the required equity essential to accessing the proposed debt facility,” he noted.