Junior graphite developer Walkabout Resources has submitted a mining licence application to the Ministry of Energy and Minerals of Tanzania for the Lindi Jumbo mine.

The application, submitted last month, was prepared in compliance with the recently promulgated amendments to Tanzania’s Mining Act, 2010. Currently, a moratorium on the award of any mining licences and special mining licences is in force throughout Tanzania.

However, the company believes that the application will be processed administratively and be decided pending final amendment requirements in accordance with the new regulations due for publication and process.

The directors of Walkabout Resources remain confident of the mining licence being awarded in compliance with the standard fiscal and regulatory requirements. As soon as the regulations have been finalised and are enforced, further discussion regarding the proposed 16% free-carried interest due to government will be progressed.

Walkabout Resources has also reported that a detailed design for the Lindi Jumbo project, in south-eastern Tanzania, is progressing in Yantai, China. The company is finalising fixed-price procurement and construction agreements for the Chinese components of the process plant and utilities, and the equipment and services that will make up the mine construction.

This engineering, procurement and construction (EPC) management area is designated for deferred funding loans under China’s Silk Road Initiative. The funding of other areas, such as shared infrastructure, tailings and waste storage, mining capital and the accommodation facility, is currently under discussion with various preferred partners and potential investors.

The directors of Walkabout Resources have indicated that they are highly encouraged by the interest in the Lindi Jumbo project and its graphite products in China. Graphite prices in China have risen sharply over September in response to shortages that have occurred, as a result of regulatory curbs being enforced on the graphite sector in China.

Larger Investment
Last month, privately owned Chinese engineering firm Jinpeng Mining & Machinery (Jinpeng) invested $1-million in Walkabout Resources through a placement authorised by the board.

Owing to this investment, Jinpeng has become Walkabout Resources’ largest shareholder with a holding of 10.6% and has not ruled out further investment to support the company in developing the Lindi Jumbo graphite project.

The new capital is being raised under Walkabout Resources’ 15% placement capacity within ASX Listing Rule 7. About 17-million shares will be issued to Jinpeng at a 10% discount to the five-day volume weighted average price prior to the receipt of the first of two tranches. Half of the funds have been received with the balance to be paid within 30 days.

“The introduction of an EPC partner as a cornerstone investor is significant for three reasons. First, it is an endorsement of the high quality of our Lindi Jumbo large flake graphite, secondly, it aligns with our fast-track modular contracting and development strategy and, thirdly, [it highlights that] Jinpeng is impressed with the depth, experience and capability of our leadership team,” said Walkabout Resources executive chairperson Trevor Benson.

He explains that the funds will be used to progress engineering and procurement works. Equipment and works between $6-million and $8-million will be commissioned while Walkabout Resources secures further project funding. The cornerstone investment allows the project schedule to be fast-tracked, while longer-term funding packages are being negotiated and secured.

“We have established a collaborative team approach with Jinpeng while working together on a full-time basis and are delighted to welcome them as a cornerstone investor and to continue our strategic relationship,” Benson adds.

Within the 15% placement capacity, more than four-million shares remain avail- able for placement at the same issue price of A$0.0711 a share. The company will place these shares with qualifying sophisticated investors as required by Section 708 of the Corporations Act.