- Mining company Walkabout Resources (WKT) has executed a non-binding, conditional term sheet for a debt funding facility
- The facility is from the African Export-Import Bank (Afreximbank), and for the amount of US$25.2 million (approximately A$34.1 million)
- Walkabout will use the facility to fund development of the Lindi Jumbo graphite project in south-east Tanzania
- While the term sheet for the facility is not yet binding, it has already received initial bank approval
- Walkabout Resources closed 17.86 per cent higher on Friday, to trade for 16.5 cents per share
Mining company Walkabout Resources (WKT) has executed a non-binding, conditional term sheet for a debt funding facility.
The facility is from the African Export-Import Bank (Afreximbank), a pan-African trade finance institution based in Cairo, Egypt. The proposed debt facility is for the amount of US$25.2 million (approximately A$34.1 million).
Walkabout intends to use the facility to fund development of the Lindi Jumbo graphite project in south-east Tanzania. This will cover equipment purchases, mine development works, site infrastructure, completion of the plant commissioning process, and ongoing costs of graphite production for export.
The loan will have a grace period of 18 months before repayments must begin, and a seven-year term to mature.
The term sheet for the facility is not yet binding, and has a number of conditions which must be met before it becomes binding. However, the term sheet has already received initial bank approval.
In addition to the satisfaction of outstanding precedent conditions, further approvals will also be required.
Walkabout’s Executive Director, Allan Mulligan, said the company is pleased that its application has received initial approval.
“Each of the development banks we have been working with recognise the outstanding economics of the Lindi Jumbo graphite project and benefits it will bring to our local community,” he said.
“There is already some price tension emerging in the natural flake graphite market and we are working towards the world-class Lindi Jumbo mining reserve being able to deliver into that,” he added.
Walkabout Resources closed 17.86 per cent in the green for 16.5 per share.