The Walkabout Resources EPCM service contract will include a deferred payment option by means of a fast-track application already underway, which provides access to funding provided through the Chinese Governments’ new US$1 trillion “Silk Road – One Belt, One Road” (Silk Road) initiative.
“Yantai Jinpeng Mining Machinery is a highly competent and experienced engineering company,” comments Walkabout Resources executive chairman, Trevor Benson.
“This EPCM and deferred payment funding is an optimal outcome for our fast-tracked development strategy. This funding model should significantly reduce the project capital required by the company,” adds Benson.
Walkabout Resources is developing the Lindi Jumbo graphite project under a fast-track project methodology.
In order to mitigate risk, it has been decided that the project will be built under a fully outsourced contracting model.
In order to achieve this, an experienced EPCM service company has been sourced and selected to carry out the process plant and shared services works.
Subject to the final EPCM agreement, these works include but are not limited to:
- The process plant from the ROM ramp pad to the bagging and despatch section
- The shared services which include mining and management offices, mine stores, workshops, wash bays, fuel storage, access roads, explosive magazine and sewerage treatment facility
- Storage facilities which include tailings dam and waste dump
- Power supply and water reticulation, clean and dirty
Walkabout Resources is required to contribute a minimum of 20% of the total EPCM funding but this index may be varied by the lender.
An initial approval for funding is due by the end of July 2017 following detailed project review.
The final loan amount is yet to be agreed though the final estimate will include EPCM management fees, interest rates and credit insurance.
Unconditional and final approval by the lending authority is due to be granted by end October 2017.
In the interim however, an independent agreement for the detailed engineering design package is being concluded with Yantai Jinpeng Mining Machinery which will allow final design engineering to proceed without delay and the final selection and procurement of equipment to occur.
Feature image credit: Walkabout Resources