Tanzanian-focused graphite play Walkabout Resources is expanding into gold exploration in Northern Ireland.

Walkabout (ASX:WKT) bought a diverse exploration portfolio from UK-listed platinum producer Lonmin for $US100,000 ($132,000) plus a 2 per cent royalty.

The acquisition was a “ready to go” exploration portfolio with up-side in gold, lithium and base metals, Walkabout told investors.

“This low-cost acquisition gives Walkabout an excellent base from which to expand shareholder value through exploration into one of the most geologically diverse and relatively underexplored regions.”

Walkabout's share price over the past year. Source: Investing.com
Walkabout’s share price over the past year. Source: Investing.com

The portfolio includes four mineral prospecting licences and two applications covering about 1000 sq km.

Included in the deal is a 50 per cent stake in a joint venture with British gold miner Kora in the highly prospective Dalradian gold belt. Up to 8.05 grams of gold per tonne has been reported in shallow drilling at the site.

Walkabout will also gain access to Lonmin’s datasets, exploration equipment, vehicles and leased premises.

The deal appears to be on the cheap side when considering more than $US7 million has already been spent across the portfolio.

Independent geological targeting for lithium, gold and base metals is now under way. Multiple targets have been identified and are being prioritised.

Lonmin decided to divest from Northern Ireland following internal restructuring of its exploration assets.

Lindi still main focus

Walkabout assured investors it was still focused on getting its Lindi Jumbo graphite project in Tanzania into production.

Changes to the Tanzanian Mining Act earlier this year and subsequent delays have been a setback to Lindi’s development pathway.

Walkabout lodged a mining licence application in September despite a halt on the award of licences in Tanzania.

The company is awaiting updates from the government. While the waiting game continues, the company is in talks to lock in long-term funding.

In September, Walkabout received $1.2 million in funding after privately owned Jinpeng Mining and Machinery became a cornerstone investor with a 10.6 per cent stake.

The stock was trading 2 per cent lower at 8.8c at noon AEDT, capitalising the company at around $15 million.