24 May Walkabout Resources starts construction prestart activities at Tanzanian graphite mine
ASX-listed Walkabout Resources has started construction prestart activities at its Lindi Jumbo Graphite Mine in Tanzania, after securing a US$20 million debt funding facility last month from CRDB Bank of Tanzania.
“The Lindi Jumbo Mine is rapidly materialising and on track for first production in the second quarter of 2022,” said Walkabout chief operating officer Allan Mulligan.
“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,” he added.
The second tranche of a three-stage development capital raise is now 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.
Upon completion of the third tranche equity raising, Walkabout will be fully funded to production with construction and commissioning expected to take nine to 12 months.
Walkabout believes the Lindi Jumbo project could be one of the highest margin graphite mines in the world, with its high percentage of large, jumbo and super jumbo flakes in concentrate.
“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,” said Mulligan.