Last checked at 20 Oct 2017 08:30
Armadale Capital Plc / Index: AIM / Epic: ACP / Sector: Investment Company
20 October 2017
Armadale Capital Plc (‘Armadale’ or ‘the Company’)
Funding Secured to Advance Development of Mahenge Liandu Graphite Project
Armadale, the AIM quoted investment company focused on natural resource projects in Africa, is pleased to announce that the Company has agreed a financing facility with a consortium of high net worth individuals (the “Consortium”) to provide up to £400,000 (‘the Facility’) to support the continued development of the Mahenge Liandu Graphite Project in Tanzania (‘Mahenge Liandu’) and completion of a Feasibility Study in H1 2018.
Overview
The Facility will provide up to £400,000 to fund working capital and support the advancement of the Mahenge Liandu project towards production The Facility is available at the discretion of the Company in £50,000 instalments The Facility is available until 20 October 2019 (the “Maturity Date”) The interest rate payable on drawn down funds is 10% per annum and the drawn down balance of the Facility is repayable in full at the Maturity Date The Lender has the option to convert the loan to shares at a 10% discount to the volume weighted average price of an ordinary share for the 10 trading days immediately prior to the Maturity Date There is a facilitation fee of 3% on any drawn funds and Armadale will issue 500,000 Ordinary Shares in lieu of advisory fees relating to the origination of the Facility The Facility is intended to support the continued work programme and activities at Mahenge Liandu, principally, the completion of: Bulk sample test work Feasibility Study Marketing activitiesNick Johansen, Director of Armadale said: “This Facility ensures our ongoing work programme and that development activities at Mahenge Liandu can continue unimpeded, as we advance our strategy to demonstrate the commercial scale, quality and strategic importance of this graphite asset to strategic investors and customers.
“In line with this, the bulk sample test work which we have previously announced is nearing completion with samples to be provided to potential off take partners, and I look forward to reporting on this in due course. In tandem with this, our feasibility work continues to advance and we are targeting the publication of a Feasibility Study in H1 2018.”
The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.
**ENDS**
| Enquiries: | |||
| Armadale Capital Plc Tim Jones, Company Secretary | +44 20 7236 1177 | ||
| Nomad and broker: finnCap Ltd Christopher Raggett / Simon Hicks | +44 20 7220 0500 | ||
| Joint Broker: Beaufort Securities Limited Jon Belliss | +44 20 7382 8300 | ||
| Press Relations: St Brides Partners Ltd Susie Geliher / Charlotte Page | +44 20 7236 1177 | ||
Notes
Armadale Capital Plc is focused on investing in and developing a portfolio of investments, targeting the natural resources and/or infrastructure sectors in Africa. The Company, led by a team with operational experience and a strong track record in Africa, has a strategy of identifying high growth businesses where it can take an active role in their advancement.
The Company owns the Mahenge Liandu graphite project in south-east Tanzania, which is now its main focus. The Project is located in a highly prospective region with a high-grade JORC compliant inferred mineral resource estimate of 40.9Mt @ 9.41% TGC. At least 32Mt of this resource has an average grade of 10.47% TGC, one of the largest high-grade resources in Tanzania, and work to date has demonstrated Mahenge Liandu’s potential as a commercially viable deposit with significant tonnage, high-grade coarse flake and near surface mineralisation (implying a low strip ratio) contained within one contiguous ore body.
Other assets Armadale has an interest in include the Mpokoto Gold project in the Democratic Republic of Congo and a portfolio of quoted investments.
More information can be found on the website www.armadalecapitalplc.com
LEI: 213800495EK876JETD10Classification: 3.1. Additional regulated information required to be disclosed under the laws of a Member State
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