Junior Walkabout Resources has secured a $20-million debt facility with investment fund manager Gemcorp to complete construction of its Lindi Jumbo graphite mine, in Tanzania.
The company has signed a term sheet with Gemcorp which includes a $20-million senior secured debt facility and a $5-million unsecured standby facility, which will ensure the Lindi Jumbo project is funded into production.
“It is pleasing to know that the Lindi Jumbo project will be funded through to production. Having Lindi Jumbo more than 85% complete to cost prior to the first drawdown, provides a significantly different base for project debt than any of the prior arrangements,” said Walkabout CEO Andrew Cunningham.
“Debt will fund just under half of the total development cost including working capital since 2021. This prudent leverage will increase the future earnings per share for shareholders relative to Lindi Jumbo being fully equity funded.”
The loan facility is subject to commercial terms typical for a transaction of this nature, and will be repaid from operating cashflow, starting in June 2024.
Source: Mining Weekly
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