PERTH (miningweekly.com) – Junior Walkabout Resources has raised an initial A$6.4-million through a share placement, and has flagged a further A$7.6-million capital raise to fund work on its flagship Lindi Jumbo graphite mine, in Tanzania.
The company on Wednesday reported that it had received firm commitments for a 32-million-share institutional placement, priced at 20c each.
The shares would be issued under the company’s existing placement capacity, and would not require shareholder approval.
Proceeds from the raising will go towards the further development of the Lindi Jumbo project, including fulfilling the minimum equity component to facilitate debt draw-down conditions for construction, and to fund general working capital.
The company told shareholders that it also intended to undertake a one-for-ten non-renounceable rights issue, also priced at 20c a share, to raise a further A$7.6-million.
The rights issue is expected to close on June 25.
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 to produce some 40 000 t/y of graphite concentrate.
Walkabout earlier this year secured a $20-million project finance facility for the construction of the graphite mine, with CRDB Bank.