Perth-based African focused coal and base metals explorer Walkabout Resources Ltd says it has signed a memorandum of agreement with Coalswana (Pty) Ltd (CSW), a technology company, to complete an integrated Pre-Feasibility and Bankable Feasibility study at Walkabout’s Takatokwane Coal Project in Botswana.

Under the MoA, CSW undertakes to fund the integrated studies and Mining Licence Application and in return for funding obligations by CSW, Walkabout will issue to CSW a 5-year Convertible Note.

Walkabout has Botswana’s largest coal asset and previously announced a 6.8 billion tonne JORC Inferred Resource and a 748 million tonne Indicated Resource of good quality thermal coal at the Takatokwane Coal Project.

The integrated studies will include the exploration, resource drilling and engineering to complete the final resource classifications, mine planning design and the optimised detailed development programme for the Ultra Clean Coal Energy Fuel (UCCEF) production facility.

“The securing of an On-Site Off-Take partner at Takatokwane while retaining the rights to export Off-Take is a major step forward for the Takatokwane Project,” said Walkabout Managing Director Allan Mulligan.

“While studies still need to confirm the optimal commercial and technical viability of the UCCEF process configuration, the multiple development options for Takatokwane coal significantly reduces risk and enhances project economics,” he added.

CSW is a Botswana Ecological Coal Based Industrialisation first conceived in 2003 and established to progress the industrialisation of Botswana’s coal endowment through the employment of Ultra Clean Coal Energy Fuel (UCCEF) production which will include, inter-alia, multiple energy, rural electrification, gasification, liquid fuels and associated by-products