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(Alliance News) - Armadale Capital PLC on Wednesday said that it has secured further GBP700,000 to fund a feasibility study of the Mahenge Liandu graphite project in Tanzania and accelerate subsequent development activities.
The Africa-focused natural resources investment company said it has agreed a new GBP400,000 convertible loan note with clients of the company's broker SI Capital Ltd. Two new drawdown facilities have also been secured providing additional working capital of up to GBP300,000, should the company require further capital for accelerated development of the graphite project.
Following the new financing arrangements, the company has a net additional working capital of GBP550,000.
Armadale Capital said it will repay outstanding GBP150,000 on its previously loan facilities, thereby removing security arrangements associated with the original drawdown facilities.
"With our financial position significantly strengthened by the recent placing of and subscription raising GBP500,000, and by the measures announced today, we remain focused on the remaining and ongoing work streams to compete the Definitive Feasibility Study," Armadale Director Nick Johansen said.
Armadale Capital shares were trading flat at 2.60 pence each in London on Wednesday afternoon.
By Tapan Panchal; tapanpanchal@alliancenews.com
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