Walkabout Resources (ASX:WKT), Walkabout Australia and Reveal Resources - Voluntary Administration

Walkabout Resources (ASX:WKT), Walkabout Australia and Reveal Resources, a West-Perth based group of companies which own and operate the Lindi Jumbo graphite mine in Tanzania, entered voluntary administration on 12 November.

In late October, Walkabout announced that in-country logistical and shipping delays resulting from port congestion at Dar es Salaam had affected export, creating significant pressure on the mine’s cash flow. Certain of the company’s shareholders and directors agreed to provide $600,000 in bridge funding, but this was not enough to stave off further issues.

Earlier this month, the company announced a voluntary suspension of its securities from trading on the ASX pending an update regarding its senior debt financing facility, and on 12 November Jeremy Nipps and Tom Birch of Cor Cordis were appointed voluntary administrators.

Richard Tucker and Paul Pracilio of KordaMentha were also appointed as receivers and managers by senior secured creditor Gemcorp Fund I. They are operating the mine and processing plant while reviewing options, having reportedly secured a $10-million facility from Gemcorp to support operations.