Walkabout Resources has secured a US$20 million debt funding facility with Tanzanian Bank CRDB towards construction of the Lindi Jumbo Graphite Mine.
“The provision of this significant debt package for Lindi unlocks the final milestone in project development and construction efforts at the mine site can commence as soon as formal documents have been executed,” said Managing Director of Walkabout, Allan Mulligan.
Mulligan said the company has persisted with negotiating the funding facility for more than a year.
“The relationship benefits Tanzania in growing its services sector and benefits our company, as the cost of funding reduces significantly in terms of sovereign risk premiums,” said Mulligan.
Meanwhile the facility remains subject to finalisation of all finance documents and conditions precedent.
During 2020, CRDB conducted detailed due diligence of technical, financial, market, legal and environmental elements of the Lindi Jumbo Project resulting in the provision of the debt facility offer.