- Walkabout Resources (WKT) encounters delays for its Lindi Jumbo graphite mine in Tanzania, after its inability to access funds from its US$20 million (A$27.78 million) debt facility
- The delays come as CRDB Bank was unable to confirm a standby letter of credit (SBLC), as part of the terms of the loan
- A replacement SBLC will now be required, but the company has warned this could take some time
- Shipments of equipment from China have been suspended until the issue is resolved, delaying the schedule of the project
- Shares in the company last traded at 21.5 cents each
Walkabout Resources (WKT) has encountered delays for its Lindi Jumbo graphite mine in Tanzania, after its inability to access funds from its US$20 million (A$27.78 million) debt facility.
The delays came after CRDB Bank was unable to confirm a standby letter of credit (SBLC), as part of the terms of the loan.
A replacement SBLC will now be required, but the company has warned this could take some time.
In the meantime, it has received short-term commitments from contractors to continue construction works.
However, further shipments of equipment from China have been suspended until the drawdown occurs.
At this stage, the company said there will be a delay on the project schedule, but it will not be able to determine the extent until shipments resume.
CEO Andrew Cunningham said the company is working to resolve the issue.
“The unexpected issues associated with finalising the stand by letter of credit required for initial debt drawdown and the consequent shipment suspension is enormously disappointing as the development of Lindi Jumbo is proceeding remarkably well and we were quite advanced in preparing for commissioning,” he said.
Shares in the company last traded at 21.5 cents each.