Walkabout Resources (ASX:WKT) recently announces that it secured a USD 20 million Debt Funding Facility (Facility) with CRDB bank for its Lindi Jumbo Graphite Mine Project in Tanzania.
Walkabout Resources explains that the funding of the Lindi Jumbo Graphite Project gives the company a clear line of site to the commencement of production and timelines towards the export of concentrate.
Negotiation of pricing, in line with emerging market-related prices, in the final binding offtake agreements can now commence as stipulated in the term sheet.
The Lindi Jumbo Graphite Project
The 100%-owned high-grade, high-margin, large flake Lindi Jumbo Graphite project is located in south-eastern Tanzania approximately 200km from the port of Mtwara.
The high-grade resource outcropping at surface boasts the highest reserve grade of any undeveloped graphite project in Africa of 5.5mt @ 17.9% Total Graphitic Carbon (TGC).
The high reserve grade and extraordinary distribution make Lindi Jumbo an exceptional project in the graphite world.
The battery industry is due to become the largest sector of demand for the graphite supply chain market. Lindi Jumbo is expected to produce about 25% of its product suite, or around 10,000 tonnes per annum, to supply energy storage applications.
The project complies with the Local Content laws of Tanzania, implementing a fully outsourced operating model whereby the key components of mining, treatment, logistics, and camp accommodation are outsourced to local Tanzanian contractors, which is further complemented by the debt finding through CRDB bank of Tanzania.
As of 2019, Tanzania’s estimated graphite reserves stand at 18 million tonnes ranking 5th in the world after Turkey (90 million tonnes), China (73 million tonnes), Brazil (72 million tonnes), and Mozambique (25 million tonnes).
Tanzania’s graphite reserves are being explored and developed by several Australia-based graphite developers. Production stages have not been reached yet.