Walkabout Resources Ltd (ASX:WKT) has completed the first US$5.1 million drawdown on its Lindi Jumbo senior debt facility with UK asset manager Gemcorp.
The funds will help the Tanzanian graphite stock repay its interim funding arrangements, pay transaction and corporate costs and provide a funding runway for the next month of project expenditures.
Walkabout CEO Andrew Cunningham said: “While the more recent construction expenditures were substantially covered by the interim funding arrangements, the drawdown from the debt facility provides confidence to hire and contract the necessary operational resources to prepare for commissioning in the final quarter of this year.”
The fine print
Walkabout’s first drawdown comes just days after it executed its final loan agreement with Gemcorp, paving the way for a US$25 million debt facility.
The company plans to complete regular drawdowns through to March 2024, until which time undrawn funds will attract a 4.2% commitment fee.
The upside participation was based on ‘bankers-case’ expected cash flows supporting the loan approval and is up to 30% of free cashflow, after debt servicing for the three-year period of the loan.
About Lindi Jumbo
Walkabout is developing the Lindi Jumbo Project to take advantage of forecast market conditions for large and jumbo flake graphite products.
The company holds 100% of a mining licence and between 70% and 100% of adjacent graphite prospecting licences at Lindi Jumbo, with an enduring option to acquire the remaining 30% share.
A high-grade graphite mineral reserve has been delineated within the mining licence area.