Walkabout Resources Makes Steady Progress on Fast-Track Development of Lindi Jumbo Graphite Project in Tanzania

Mineral exploration company, Walkabout Resources Ltd (WKT), provides an update on the development progress of its Lindi Jumbo graphite project in Tanzania, which is set for fast-tracked production.

Walkabout Resources Ltd (WKT) has announced significant progress in the development of its Lindi Jumbo graphite project in south-eastern Tanzania. The project, which hosts a high-grade, coarse flake graphite deposit, is being fast-tracked to production, with commissioning anticipated in the second half of 2023.

Major Milestones Achieved: Infrastructure and Financing

WKT has successfully completed various crucial activities at the project site, including site clearing and preparation for the processing plant, camp, and tailings storage facility. Additionally, the construction of the access road and bridge over the Mbwemkuru River has been finalised. The installation of the water supply borehole and pipeline has been accomplished, and the engineering, procurement, and construction (EPC) contractor and equipment have been mobilised. Civil works for the processing plant foundations and camp buildings have commenced.

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Furthermore, WKT has secured a grid power connection agreement with the Tanzania Electric Supply Company Limited (TANESCO), ensuring reliable and low-cost electricity supply for the project. The company has also obtained a US$20 million debt facility from Gemcorp Capital LLP to support the completion of project construction and meet working capital requirements. Additionally, a vendor finance agreement with TNR Investments Ltd has been executed, providing US$2. 5 million for the purchase of mining equipment. Moreover, WKT has signed an institutional standby funding agreement with Acuity Capital Investment Management Pty Ltd, which will offer up to A$10 million of flexible funding over a 36-month period.

Strong Market Interest and Offtake Agreements

WKT's premium graphite product, with an average grade of 95. 6% total graphitic carbon (TGC) and a significant flake distribution of 75%, has garnered strong market interest. The company has entered into binding offtake agreements with four customers, securing a total of 30,000 tonnes per annum (tpa) of graphite concentrate, accounting for 75% of the planned production.

Delivering Value to Shareholders and Stakeholders

WKT expresses confidence in the Lindi Jumbo project, stating that it will operate as a low-cost, high-margin operation, delivering substantial value to its shareholders and stakeholders.

Disclaimer: This article provides a summary of the original Walkabout Resources Ltd announcement and is not a substitute for the full text of the announcement.

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