Walkabout in $10m raising

Junior explorer Walkabout Resources will tap investors for up to $10 million through a placement and rights issue as the company continues exploration at its African projects.

The placement will raise $3.4 million through the issue of 33 million shares at 10.1 cents each and the company received interest from institutional and sophisticated investors.

For every four shares there is one option exercisable at 15 cents on or before December 31 2019.

Patersons Securities acted as lead manager to the placement.

In conjunction with the placement, the company is conducting a rights issue to raise up to $6.7 million.

The issue will be made on the basis of one rights share for every three ordinary shares at an issue price of 10 cents.

Similar to the placement, one option is exercisable at 15 cents for every four shares purchased.

The rights issue will be underwritten by Patersons up to $6.2 million.

Walkabout said it planned to use the funds raised to purchase the remaining 30 per cent of the Lindi Jumbo graphite project in Tanzania and fast-track work at its lithium project in Namibia.