Walkabout attracts New York investor

New York-based resource investment company Sigur Minerals has taken a $1.9 million placement in Walkabout Resources, representing 19.9 per cent of the Perth-based junior exploration firm’s stock.

The news sent Walkabout shares surging by 100 per cent, closing at 0.4 cents per share.

In a statement today, Walkabout said it would convene a general meeting for shareholders to approve the placement, while Sigur will advance Walkabout in a $150,000 investment deposit.

Following the placement, Walkabout said it would undertake a one-for-five rights issue to shareholders, which will be partially underwritten by Sigur, to raise $1 million.

Walkabout’s shares are valued at 0.5 cents each.

Managing director Allan Mulligan said the investment and new relationship came at the right time for the company and its Takatokwane thermal coal project in Botswana.

“We envisage the combined team maintaining the focus on developing the project and also, through leveraging on the extensive network contacts of Sigur, seeking out new opportunities within the South African junior coal sector and in delivering thermal coal to Eskom,” Mr Mulligan said.

Eskom is a South African electricity agency.

Sigur is seeking opportunities to develop and grow a new Southern African coal company.