Monday , April 15 2024

Tanzania’s Lindi Jumbo project secures construction loan

Walkabout Resources has signed a term sheet with Gemcorp, an emerging-markets focused investment fund manager, for up to US$25 million to complete construction of the Lindi Jumbo Graphite Mine in Tanzania.

Andrew Cunningham, Walkabout Chief Executive Officer said Lindi Jumbo project is more than 85% complete to cost prior to the first drawdown, which provided a significantly different base for project debt than any of the prior arrangements.

“The loan will be a high yield senior debt facility with non-dilutive free cash flow participation over the term of the loan.

“This prudent leverage will increase the future earnings per share for shareholders relative to Lindi Jumbo being fully equity funded,” said Cunningham.

He said the term of the loan is for three years, with interest set at a secured overnight financing rate (SOFR), currently 4.5 percent, plus a high yield margin to be settled at the end of the due diligence.

“The first drawdown is expected in early May 2023 after completion of final due diligence and formal documentation.”

Walkabout are confident that this partnership will help us achieve our goals of completing the Lindi Jumbo Graphite Mine in Tanzania.

“We will continue to update our shareholders as we progress towards production in 2023.”

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