PERTH (miningweekly.com) – Junior Walkabout Resources has secured a $20-million project finance facility for the construction of its Lindi Jumbo graphite mine, in Tanzania.
The ASX-listed company on Tuesday said that its wholly owned subsidiary had inked a project finance facility with the CRDB Bank of Tanzania for a debt facility to fund the construction of the mine.
“We are delighted to have CRDB Bank as the Lindi Jumbo project financing partner. We were very keen to meet not just the requirements of local content but the spirit as well, and the CRDB facility accomplishes this,” said Walkabout MD Allan Mulligan.
The facility will have a 42-month tenor and an interest rate of 8% a year, with the outstanding facility and interest to be repayable in equal quarterly installments starting after a 12-month grace period.
“We have persisted with negotiating this funding facility for more than a year. The relationship benefits Tanzania in growing its services sector and benefits our company, as the cost of funding reduces significantly in terms of sovereign risk premiums.
“The provision of this significant debt package for Lindi unlocks the final milestone in development and construction efforts at the mine site can commence as soon as formal documents have been executed. The project has assessed any potential Covid-19 delays and we have introduced suitable travel and safety systems to mitigate risk,” said Mulligan.
The Lindi Jumbo project is expected to require a capital investment of $32-million, including working capital and financing costs, with $3.6-million already having been spent on construction activities and on long-lead manufacturing items.
Over its 24-year mine life, the project is expected produce some 40 000 t/y of graphite concentrate.