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Walkabout Resources pockets funds to progress Lindi Jumbo Graphite Project

Walkabout Resources (ASX:WKT) has received a strong show of support from shareholders, with its share purchase plan raising $403,750.

This follows an initial placement of $216,000 to sophisticated shareholders, bringing the total raised to $619,750.

The funds will be employed in progressing the development of the Lindi Jumbo Graphite Project in south east Tanzania.

Walkabout has already satisfied the earn-in requirements for 70% of the licences, and has environmental permitting and planning processes underway.

The company has a strategy to mine the high-grade envelope at Lindi as it seeks to attract a cornerstone investor and path to early project development.

Allan Mulligan, managing director, commented on the raising:

"We are once again very pleased with the scale of this contribution by shareholders.

"It is clear that many shareholders of Walkabout are following the story closely and support the strategy being followed by the board."

Shortfall offer

The board has decided to open the Shortfall Offer for the shortfall under the rules of the SPP.

The Shortfall amount is estimated to be $445,553 and the price is $0.0032, and will be open on Tuesday 8 March and is expected to be open for around two weeks.

The offer will only be available to investors that qualify as Sophisticated Investors under the rules of the ASX.

Mulligan added: "We encourage investors to take advantage of this well priced Shortfall Offer so that we may progress the fast tracked development of the high grade Lindi Jumbo Graphite project without delay."

Key attributes of Lindi project

- Located right next to Magnis' Nachu Project.
- Grade is substantially higher than Nachu - lower input costs.
- Early results confirm that the Jumbo flake ratios will be similar to Nachu.
- Walkabout can apply for a Mining Licence not Special Mining Licence - substantially easier and quicker.

Early production

With these key project attributes the potential for fast tracking a mining project at Lindi in 2017 become higher.

The company is aiming to produce a high-grade jumbo and large flake concentrate product. The strategy should assist to introduce an end-user market partner which will secure product off-take.

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