Walkabout Resources has announced another major milestone in its progress towards construction of the Lindi Jumbo graphite mine in Tanzania securing a US$20 million Debt Funding Facility with Tanzanian Bank CRDB.
During 2020, CRDB conducted detailed due diligence of technical, financial, market, legal and environmental elements of the Lindi Jumbo Project resulting in the provision of the offer of this debt facility.
Managing Director of Walkabout Allan Mulligan commented:
“We are delighted to have CRDB Bank as the Lindi Jumbo project financing partner. We were very keen to meet not just the requirements of local content but the spirit as well and the CRDB facility accomplishes this.
“We have persisted with negotiating this funding facility for more than a year. The relationship benefits Tanzania in growing its services sector and benefits our company, as the cost of funding reduces significantly in terms of sovereign risk premiums.
The provision of this significant debt package for Lindi unlocks the final milestone in project development and construction efforts at the mine site can commence as soon as formal documents have been executed. The Project has assessed any potential Covid delays and we have introduced suitable travel and safety systems to mitigate risk.
“This will represent the first serious construction effort of a mining project in Tanzania since the 2017 Mining Act amendments.”