Jinpeng has extensive experience in Africa and will
become Walkabout's largest shareholder.
On-site at Lindi
Walkabout Resources Ltd (ASX:WKT) has shown that quality
assets in Tanzania attract investment, with Chinese engineering firm Jinpeng
Mining and Machinery Co. Ltd. investing US$1 million.
Jinpeng will now become Walkabout's largest shareholder
with a holding of 10.6% and has not ruled out further investment to support the
company in developing the Lindi Jumbo Graphite Project.
Lindi is located in south eastern Tanzania, with
Walkabout holding a 70% stake, with an option to acquire the remaining 30%.
Lindi currently hosts a resource of 3.24 million tonnes
at 10.9% graphite, and a reserve of 809,081 tonnes at 16.13% graphite.
Trevor Benson, executive chairman for Walkabout,
commented: "The introduction of an EPC Partner as a cornerstone investor
is significant for three reasons.
"Firstly, it is an endorsement of the high quality
of our Lindi Jumbo large flake graphite, secondly it aligns with our fast-track
modular contracting and development strategy and thirdly Jinpeng are impressed
with the depth, experience and capability of our leadership team.
"We have established a collaborative team approach
with Jinpeng while working together on a full-time basis and are delighted to
welcome them as a cornerstone investor and continue our strategic relationship."
Use of funds
The funds will be used to progress engineering and
procurement works, and equipment and works to the value of between US$6 million
to US$8 million will be commissioned while Walkabout secures further project
funding.
Importantly, the cornerstone investment allows the
project schedule to be advanced while longer term funding packages are being
negotiated and secured.
EPC partner details with Jinpeng
Walkabout has previously signed a Heads of Agreement with
Jinpeng to engineer, manage and build the Lindi Jumbo process plant.
The engineering, procurement and construction management
service contract will include a deferred payment option.
This provides access to funding provided through the
Chinese governments’ new US$1 trillion One Belt, One Road initiative.
Jinpeng has extensive experience in designing,
manufacturing and building graphite flotation facilities in China, and building
plants in Africa.
Source: Proactiveinvestors