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Walkabout Resources has commenced construction prestart activities at its Lindi Jumbo Graphite Mine in Tanzania, in order to bring into production what is scheduled to be the one of the highest margin graphite projects in the world.

Securing a US$20 million debt funding facility from CRDB Bank of Tanzania for the high-grade, large flake graphite project in April 2021 was a critical milestone in the company’s advancement to construction, as was the company completing the first stage of its companion equity contribution in May 2021.

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Walkabout secures US$20 million project finance facility for graphite mine

The second tranche of a three-stage development capital raise is currently underway with shareholders to be invited to participate in a Rights Issue on the same terms as the Institutional Placement to raise up to A$7.6 million and which closes on Monday 25 June.

Alternatives for the final and third tranche are currently being assessed by the Board with an announcement expected before the end of the quarter.

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Commenting on the imminent commencement of construction, Allan Mulligan – COO of Walkabout Resources said:

“The Lindi Jumbo Mine is rapidly materialising and on track for first production in the second quarter of 2022. At Walkabout, we have always done what we said we would do, and it has been very rewarding finalising planning and project logistics this week.

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“Our focus in stage 1 and 2 construction are on those items on the critical path including the civils required for plant erection and the continued manufacture and shipping of plant equipment from our EPC contractor in China.

“The CRDB debt facility provided a critical platform from which to commence raising the companion equity. Our second tranche capital raising is underway in tandem with price tensions in the large flake graphite market and as we mobilise contractors under stage 1.

“As such, we are expecting a very positive response from shareholders.”

At completion of the third tranche equity raising, Walkabout will be fully funded to production with construction and commissioning expected to take 9-12 months. Such a short time to production gives Walkabout an early mover advantage.

“What sets Lindi Jumbo apart from most other graphite deposits is its very high percentage of Large, Jumbo and Super Jumbo-sized flakes in concentrate, positioning us to capture premium priced and value-added industrial markets.

“With large flake graphite prices increasing by more than 2% in April and demand from the lithium-ion battery industry expected to outstrip supply by 2025, Roskill has predicted prices will continue to rise,” concluded Mulligan.