(Ecofin Agency) - Mining company Walkabout Resources has received initial approval from Afreximbank for a $25 million loan for the Lindi Jumbo graphite project in Tanzania. According to the non-binding Memorandum of Understanding previously entered into by the two parties, the maturity of the financing is 7 years, with an 18-month grace period.
“Each of the development banks we have been working with recognise the outstanding economics of the Lindi Jumbo graphite project and benefits it will bring to our local community,” commented CEO Allan Mulligan.
With this $25 million financing on track, Walkabout guarantees almost all of the $27.8 million investment required to develop the project. Once in operation, it is expected to deliver 40,000 tons of graphite annually and generate $1.4 billion in revenues over its 24-year life.