Trevor Benson, executive chairman, said: “This funding package allows Walkabout to implement further development of the Lindi Jumbo Graphite Project in Tanzania and to initiate exploration programs over the extensive lithium exploration licences in Namibia.
“In addition, we will be able to implement an exploration program over the Northern Ireland licences which were recently acquired.”
The company has already secured $3.4 million from institutional and sophisticated investors through a share placement at $0.101 each.
In conjunction with the placement, Walkabout is undertaking a renounceable pro rata entitlement offer (rights issue) to raise up to circa $6.7 million at $0.10 per share.
The company is planning to finalise a prospectus for the rights issue and release it to the ASX next week.
Lindi Jumbo Graphite Project
The new funding provides further momentum and underwrites the project development for the Lindi Jumbo Graphite Project in Tanzania.
Currently, Walkabout holds 70% of the Lindi project with an option to acquire the remaining 30% for US$1 million.
The company has adopted a fast-track strategy for project development in order to receive maximum advantage of impending structural changes to the international natural flake graphite market.
The project is “ready to build” and is awaiting the grant of a mining licence from the Tanzanian government.
Extensive portfolio in Namibia and Northern Ireland
Walkabout recently acquired two lithium licences in the highly prospective Orange River Pegmatite Belt (ORPB) in the Karas region of southern Namibia.
Recent mapping has highlighted the outcrop of more than 60 previously unmapped pegmatites on the properties that have not previously been exposed to modern exploration techniques for lithium.
These licences are prospective for gold, base metals and other minerals including lithium.
Well funded for next steps
Walkabout is planning to use the new funds to exercise the option to acquire the remaining 30% of the Lindi Jumbo Graphite Project from the vendor for US$1 million.
The company will also use the funds for ordering equipment from China required to commence project development at Lindi.
An initial fast-track program of exploration work at the Eureka Lithium Project in Namibia is planned to commence in January 2018.
Walkabout is also planning reconnaissance and follow up work in Northern Ireland on existing licences and studies in selecting and acquiring further prospective exploration sites.