Walkabout signs graphite deal with Wogen Pacific

Perth-based graphite developer Walkabout Resources has signed a binding sales, purchasing and marketing agreement with international commodities trader Wogen Pacific for graphite from its Lindi Jumbo project in Tanzania.

The five-year agreement will see Wogen Pacific initially buying and marketing a minimum of 10,000 t/yr and a maximum of 30,000 t/yr of graphite. Advanced payment based on 80pc of the value of each consignment will form an important part of working capital funding for the Lindi Jumbo project, Walkabout said.

Wogen Pacific, which has a strong presence in Asia, Europe and the US, will develop markets for Lindi Jumbo graphite across the world.

"The company will be able to leverage the marketing expertise of Wogen Pacific across the globe for sales of Lindi Jumbo graphite at favourable prices and to source additional offtake agreements," executive chairman Trever Benson said.

"The agreement is a key element in de-risking the Lindi Jumbo project and attracting development capital leading up to construction and first production."

Walkabout has several other binding and non-binding term sheet agreements in place for the 40,000 t/yr of flake graphite expected to be produced by the project. Some of these will not be translated into binding offtake agreements.