Walkabout Resources reduced the commitments under its EPC Contract with Jinpeng. The agreed amended EPC contract has been reduced to USD 12,003,378, a reduction in contract price of USD 1,370,140. The reduction in contract value is due to the following scope changes in the EPC contract: The removal of the product screens (now replaced by the Rotex screens out of Australia) had a
consequential effect of reducing the rest of associated items including associated equipment, instrumentation and steelwork. The removal of the laboratory and consumable store buildings that are subject to a likely BOOT option with alternative service providers. The removal of the 4.5 MW diesel generator backup power facility from the EPC scope. Early indications are that the cost of a suitable emergency backup generating facility will be approximately 25% of the original costs. The aim is to source the generators locally. The future committed payments under the EPC contract total USD 2,685,130 including 5% retention and milestone payments that will only be paid after practical completion, successful commissioning and handover of the processing plant. Under the amended EPC contract less than USD 2 million is required to be paid to Jinpeng prior to practical completion of the Lindi Jumbo plant. To date Lindi Jumbo has paid for approximately 79% of the total EPC contract value which is a fixed price contract.