PERTH (miningweekly.com) – Graphite developer Walkabout Resources has cleared another hurdle in a $20-million debt facility for its Lindi Jumbo project, in Tanzania, with Gemcorp Investment Committee approving the transaction facility along with a $5-million standby facility.
The debt and standby facilities are both subject to formal loan documentation, which is being prepared.
“We are excited that the senior debt facility is nearing completion. The advanced development stage and high product margins expected from Lindi Jumbo, allow us to access high-yield debt that other projects cannot. Such a facility, also allows us to deliver on shareholders' expectations of full project funding while minimising potential dilution,” said Walkabout CEO Andrew Cunningham.
The senior debt facility will have a three-year period and will be repaid from operating cash flow, starting in June 2024. The initial drawdown of the senior debt facility will be used to refinance existing interim funding measures, with the remainder of the facility to be used to complete construction costs, fund commissioning and provide working capital for the Lindi Jumbo project.
The Lindi Jumbo project will produce 40 000 t/y of graphite over a mine life of 24 years.