Walkabout Resources

Walkabout Resources is confident that good progress is being made on the funding of the Lindi Jumbo graphite project and continues to focus on this matter as a first priority.  

As announced on 25 March 2020, Walkabout Resources continues to engage with Pareto Securities to raise US$40 million to fund the development of the project. This process has involved the marketing, through Pareto, of a structured high yield bond into international investment markets.

As a result of the global economic slowdown caused by the COVID-19 virus, the funding process implemented by Pareto to market their structured high yield bond, has seen a decline in potential investor demand.

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More recently and in addition to this process, the company has, with the assistance of Pareto, implemented a parallel strategy of assessing and entering into direct negotiations with a number of African development banks to secure debt funding for Lindi Jumbo.

Significantly, in March this year, the company commenced direct negotiations with an African development bank and has received a non-binding, conditional term sheet for direct debt for a total of $30 million.

In order to progress this transaction and meet a series of the bank’s stringent loan security requirements, including an equity component precondition, ongoing work remains to be finalised and is the immediate focus for the company.

In addition to the ongoing funding of the Lindi Jumbo graphite project, the company retains a strongly embedded technical presence within its geographic regions of interest.

As a result, the company has identified a number of longer-term exploration opportunities and is currently moving to secure these licences, at very low cost. Walkabout Resources has always maintained a diversified exploration portfolio driven by its in-house regional technical capabilities continuing to assess and rank opportunities as they arise.

The board believes it is a pragmatic and sensible initiative to leverage the company’s exceptional in-country technical exploration capacities to assess and acquire other value creating mineral prospects.