PERTH (miningweekly.com) – Graphite developer Walkabout Resources has executed the agreement for a senior debt facility worth up to $25-million with Gemcorp.
The debt facility will consist of a $20-million Tranche A and a $5-million Tranche B facility, with the interest rate margin fixed at 14% for Tranche A and 16% for Tranche B above the benchmark secured overnight financing rate.
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, in Tanzania.
“We are very pleased with the final execution of the debt facility and to have the support of Gemcorp as we move into the final stages of the construction of the Lindi Jumbo graphite mine. The structure of the financing allows us to avoid equity dilution on the transaction and will allow shareholders to benefit in the medium to long term,” said Walkabout CEO Andrew Cunningham.
The Lindi Jumbo project will produce 40 000 t/y of graphite over a mine life of 24 years.