The company prospecting for rare metals in Kirkcudbrightshire has hit a snag – in Tanzania.
Walkabout Resources (WKT) is currently examining the potential for mining the Galloway hills for gold, silver, nickel and other ores.
Blackcraig, a former lead mining area below Cairnsmore of Fleet, and Glenhead near Loch Trool are top of the prospecting list.
JDH Exploration, WKT’s UK subsidiary, has yet to declare whether bore samples and aerial surveys from Blackcraig show promise.
Now it has emerged that WKT has hit a financial roadblock in its Lindi Jumbo graphite mine development in Tanzania.
The company has been unable, as yet, to utilise a $20m debt facility required to part-finance the project.
Major on site contractors have provided a short-term commitment to continue working but the funding issue has meant further shipments of mining equipment from China have been suspended.
In an announcement to the Australian Securities Exchange, WKT chief Andrew Cunningham said: “We are working tirelessly to resolve the issue.”
Claire Taylor, of the action group Galloway Against Mining, which has around 1,300 supporters, said: “Are we ever going to hear about the results from Blackcraig, that we have been promised repeatedly, if the company is having problems raising cash even at this early stage? It doesn’t inspire confidence in the slightest.”
GAM claims mining activity would lead to toxic run-off leaching on burns and rivers.
JDH maintains approval of any mine would take years and it would be subject to tough environmental standards. It holds three exploration licences covering 750 square kilometres between Gatehouse, Newton Stewart and Dalry.
WKT was approached for comment.
