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25 Jun 2014 14:45
25 June 2014
Armadale Capital Plc (‘Armadale’ or ‘the Company’)
Conversion of MRI Debt
Further to the announcement by Mine Restoration Investments Limited (‘MRI’), Armadale announces that it has converted approximately ZAR3.3m of debt into MRI Shares as part of the anticipated debt for equity conversion by the lenders to MRI.
The conversion has been undertaken at price of ZAR0.05 per share, and has resulted in Armadale subscribing for 65,960,757 MRI Shares which, together with its current holding and the 1 million MRI Shares issued to Armadale in lieu of Mr Lewis’ directors fees, takes Armadale’s aggregate shareholding in MRI to 249,260,787 shares, representing 29.9 per cent of the enlarged MRI share capital. At MRI’s current share price of ZAR0.10, this shareholding is valued at approximately ZAR25 million (£1.39m).
Justin Lewis, Director of Armadale commented “We are pleased to see the anticipated debt to equity swap by lenders to MRI (including Armadale) has now been completed. As noted by MRI, the issuing of the conversion shares is a positive development that strengthens MRI’s balance sheet as well as removing the significant cash cost of servicing the debt.”
**ENDS**
| Enquiries: | ||
| Armadale Capital | ||
| Justin Lewis, Director | +44 7973 732603 | |
| Charles Zorab, Investor Relations | ||
| Nomad and broker: finnCap Limited | ||
| Stuart Andrews | +44 207 220 0500 | |
| Christopher Raggett | ||
| Press relations: St Brides Media & Finance Ltd. | ||
| Susie Geliher | +44 207 236 1177 | |
| Charlotte Heap | ||
Notes
Armadale is focused on investing in and developing a portfolio of investments, targeting the natural resources and/or infrastructure sectors in Africa. Led by a team with operational experience and a strong track record in Africa, the Company has a strategy of identifying high growth businesses where it can take an active role in their advancement.
Armadale is developing the Mpokoto Gold project in the Democratic Republic of the Congo, to which it holds the right to an 80% interest, which it aims to bring into production by the end of 2015. Armadale also currently holds approximately a 37% interest in Mine Restoration Investments Ltd, a South African listed company, which is involved in the briquetting and sale of coal fines in KwaZulu Natal and an acid mine drainage project in the Witwatersrand basins, as well as a number of other quoted investments.
More information can be found on the website www.armadalecapitalplc.com.
Copyright Business Wire 2014
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