Walkabout Resources Ltd (ASX:WKT) has further bolstered its strategy to begin production from the Lindi Jumbo Graphite Project in Tanzania early next year with a US$700,000 investment from Battery Metals Capital Group, LLC (BMCG).
The investor has exercised its right to accelerate US$700,000 of a standby financing agreement with Walkabout, which was announced earlier this year.
Shares to be issued
Accordingly, Walkabout has received the US$700,000 investment from BMCG and will issue 13,705,405 shares to BMCG in relation to that investment in the coming days under a cleansing prospectus.
No further shares will be issued in relation to this investment and BMCG has no right to accelerate any further amount of the standby financing.
READ: Walkabout Resources on track for Lindi Jumbo to come online in early 2024
Walkabout Resources managing director & CEO Andrew Cunningham said: "The BMCG standby financing was critical in providing our contractors with comfort of Lindi Jumbo's capacity to repay vendor interim finance.
“Important support”
"While the company does not expect to draw on the BMCG standby financing, Lindi Jumbo would not be where it is today without this important support from BMCG."
The remaining funding commitment under the standby financing is available to the company through to the anniversary date of the agreement, solely at Walkabout’s election.
At this stage, the company does not intend to draw on the standby financing as expected funding needs through to the anniversary date are likely to be met by the existing senior debt facility.
This current issue of shares to BMCG concludes the obligation of the company to issue shares to BMCG. Any further drawdowns of the standby financing and corresponding issues would be at the election of the company only.