Walkabout Resources Ltd (ASX:WKT) continues to progress funding options for development of the Lindi Jumbo Graphite Project in southeast Tanzania through which it aims to take advantage of forecast market conditions for large and jumbo flake graphite products.
One of these options involves engaging with Pareto Securities with the aim of raising US$40 million.
This process has involved the marketing, through Pareto, of a structured high yield bond into international investment markets.
As a result of the global economic slowdown caused by the COVID-19 virus, this funding process has seen a decline in potential investor demand.
African development banks
In addition, Walkabout has, with the assistance of Pareto, implemented a parallel strategy of assessing and entering direct negotiations with a number of African development banks to secure debt funding.
In March, the company commenced direct negotiations with an African development bank and has received a non-binding, conditional term sheet for direct debt for a total of US$30 million.
The company is focused on progressing this transaction and meeting a series of the bank’s stringent loan security requirements, including an equity component precondition, in the near-term.
The company retains a strongly embedded technical presence within its geographic regions of interest and has identified several longer-term exploration opportunities and is moving to secure these licences, at very low cost.
Walkabout has always maintained a diversified exploration portfolio driven by its in-house regional technical capabilities continuing to assess and rank opportunities as they arise.
The board believes it is a pragmatic and sensible initiative to leverage the company’s in-country technical exploration capacities to assess and acquire other value-creating mineral prospects.
Walkabout is exploring in southern Namibia at the Eureka Lithium Project and is also exploring for gold and base metals in Northern Ireland and Scotland.