Walkabout secures bridge funding amid shipping delays
Africa-focused Walkabout Resources has announced that shipping delays caused by port congestion at Dar es Salaam are impacting the export of graphite concentrate from its Lindi Jumbo project, in Tanzania. This has led to a cash flow crunch for the company.
The delays, which affect planned shipments of over 1 500 t, are now expected to push exports into early November.
Walkabout typically receives 80% of the shipment's value upon loading from its partner, Wogen, making the delays particularly challenging for the mine's cash flow.
In response to the need for working capital, several directors and major shareholders have stepped in to provide short-term relief, extending bridging loans totalling A$600 000.
The delay in cash flow has also required the company to seek an extension of its senior debt obligations with Gemcorp. The senior lender agreed to extend the September interest payment to November 11, 2024, and to advance an additional $500 000 under tranche B of the facility.
The company will pay an extension fee of 3% and capitalise an additional 5% interest until the loan is refinanced. In addition, the company’s requirement to inject further cash into Lindi Jumbo has been increased to a minimum of $5-million.
Walkabout states that Lindi Jumbo products remain in high demand by end customers, with requests for product delivery in 2024 exceeding forecast production. Daily ore feed rates have been increasing over September and October and have been accompanied by improvements in all the other key operational metrics.
Production is expected to reach the planned output rate of 40 000 t/y by the start of the 2025 calendar year.
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