LONDON (Alliance News) - Armadale Capital PLC Friday said it has taken up an option to acquire the rest of Netcom Global Inc for payment in shares, meaning it will get the right to an 80% interest in the Mpokoto Gold Project in the south of the Democratic Republic of Congo.
Armadale bought 22% of Netcom for USD255,000 and will now issue 700 million shares for the 68% of the business. It will issue half at completion and the other half when the Mpokoto project gets exploitation licenses, which it expects to happen by the end of June. It will buy the other 10% for 93 million shares at completion.
"Mpokoto is a highly prospective, low capex, low cost gold project," Armadale Chairman Peter Marks said in a statement. "With an estimated resource of 380,000 ounces of gold from 7.2 million tonnes at 1.65 grammes a tonne of gold at a cut-off grade of 0.5 grammes a tonne gold, and a potential exploration target of 20-24 million tonnes at 1.5-1.8 grammes a tonne gold, Mpokoto represents a compelling investment opportunity."
"This investment underlines Armadale?s commitment to the Project as the Company continues to build a portfolio of revenue generating African resource assets. In line with this investment, Armadale has a defined development strategy in place, targeting commercial gold production within 24 months," it added.
Armadale Capital shares were up 2.7% at 0.2746 pence Friday morning.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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Armadale Capital (ACP)