LONDON (Alliance News) - Armadale Capital PLC on Wednesday said it has completed a strategic financing, raising GBP795,275 through a share placing.
The AIM-listed investment company, focused on natural resource projects in Africa, issued 72.3 million shares at a price of 1.1p each. The stock was trading 5.2% higher on the day Wednesday at 1.21p a share.
Each share has an attaching warrant to subscribe for a further new ordinary share at a price of 2.2p with a life to expiry of three years from the admission of the placing share.
Armadale Capital intends to use the proceeds to complete of a feasibility study for the Mahenge Liandu graphite project in Tanzania.
New investor participation was secured largely through SI Capital Ltd, Armadale said, which following successful completion of the strategic financing exercise has been appointed as joint broker to the company.
"The strategic financing announced today provides the necessary capital to secure the completion of the company's key definitive feasibility study for its Mahenge Liandu graphite project and will bring Armadale to the point at which we will make the decision to mine," said Director Nick Johansen.
In addition, Armadale said Paul Johnson, former CEO of natural resource investment company Metal Tiger PLC, will join the board of Armadale as non-executive director.
Value Generation Ltd, which is a private company wholly owned by Johnson and his wife, has contributed GBP25,000 to the strategic financing.
"We look forward to working with Paul as the company looks to deliver the definitive feasibility study findings and significantly enhance awareness of the company's value proposition," added Johansen.
Armadale Capital (ACP)