Source: Walkabout Resources
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  • Walkabout Resources (WKT) signs a term sheet worth up to US$25 million (A$37 million) with Gemcorp to complete the construction of its Lindi Jumbo graphite mine in Tanzania
  • Under the debt facility term sheet, the loan will last for three years and will be set at secured overnight financing rates (SOFR), currently sitting at 4.5 per cent
  • A formal agreement is conditional upon WKT tax, legal and environmental due diligence and regulatory and shareholder approvals
  • Walkabout plans to draw down the first funds under the loan in early May following the completion of formal documentation
  • WKT shares are up 4.55 per cent and trading at 11.5 cents at 2:44 pm AEDT

Walkabout Resources (WKT) has signed a term sheet worth US$25 million (A$37 million) with Gemcorp to complete the construction of the Lindi Jumbo Graphite Mine in Tanzania.

Under the debt facility term sheet, the loan will last for three years and will be set at secured overnight financing rates (SOFR), currently sitting at 4.5 per cent.

A formal agreement is conditional upon WKT tax, legal and environmental due diligence and the company obtaining requisite investment committee final approvals and the green light from regulators and shareholders.

Walkabout plans to draw down the first funds under the loan in early May following the completion of formal documentation.

“It is pleasing to know that the Lindi Jumbo project will be funded through to production,” Walkabout CEO Andrew Cunningham said.

“Having Lindi Jumbo more than 85 per cent complete to cost prior to the first drawdown provides a significantly different base for project debt than any of the prior arrangements.”

The Walkabout CEO said the Gemcorp loan would fund just under half of the total project development cost, including working capital since 2021.

The Loan Facility is to be repaid from WKT’s operating cash flow, with repayments expected to commence by June 2024.

Gemcorp will also be entitled to a proportion of free cash flow after tax and debt servicing, with the proportion to be confirmed through final due diligence.

WKT shares were up 4.55 per cent and trading at 11.5 cents at 2:44 pm AEDT.

WKT by the numbers
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