Walkabout Resources Ltd. said Dec. 7 that it secured approximately A$10.1 million in funding for the development of its feasibility-stage Lindi Jumbo graphite project in southeastern Tanzania.
The company received commitments for a share placement of 33,552,040 shares at 10.1 Australian cents apiece to raise gross proceeds of A$3.4 million and will undertake 1-for-3 rights issue priced at 10 cents per share on a renounceable, pro rata basis to raise up to A$6.7 million.
Walkabout will issue 1 option for every four shares subscribed in either the placement or rights issue, exercisable at 15 cents per share by Dec. 31, 2019.
The rights issue will be underwritten up to A$6.2 million by Patersons Securities Ltd., which is also acting as lead manager on the placement.
The company expects to release a prospectus for the rights issue next week, with closing anticipated Jan. 17, 2018. The placement is expected to be settled Dec. 12.
Walkabout said the financing enables it to exercise an option to acquire the remaining 30% of the Lindi Jumbo graphite property and start exploration at the Eureka lithium property in southern Namibia and continued exploration for gold, base metals and other minerals in Northern Ireland.
The company, which can acquire the remaining 30% in Lindi Jumbo for US$1 million under a 2014 agreement, acquired an exploration portfolio in Northern Ireland in mid-November for US$100,000 before securing a second lithium prospecting license in Namibia later that month.