(Alliance News) - Shares rose in Armadale Capital PLC on Friday after confirming the receipt of its mining licence for its Mahenge Liandu graphite project in south-east Tanzania from the country's Mininstry of Energy & Minerals.
Shares in the Africa-focused natural resource projects investor were 17% higher at 5.34 pence on Friday in London.
The licence provides the company with exclusive development and mining rights over the graphite resources within the 8.5 square kilometre licence, and marks a major derisking milestone for investors.
"Receipt of the 10-year mining licence for the Mahenge Liandu graphite project is one of the final and most important de-risking milestones for the company and allows us to push forward towards construction of our planned initial Stage 1 60,000 tonne per annum capacity for the project - an initiative which will bring significant benefits to stakeholders, both local communities and plc level investors," said Chair Nick Johansen.
"Armadale continues to make progress in other crucial workstreams and as previously indicated, we are making positive progress in development funding options specifically a debt package for the project, the company is also currently in discussions with a number of potential finance partners," Johansen added.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Armadale Capital (ACP)