Last checked at 18 Jan 2017 07:00
Armadale Capital Plc / Index: AIM / Epic: ACP / Sector: Investment Company
Armadale Capital Plc (‘Armadale’ or ‘the Company’)
Placing to Raise £650,000
Armadale, the AIM quoted investment company focused on natural resource projects in Africa, announces that it has raised £650,000 through the placing of 26,030,000 new ordinary shares of 0.1 pence each (‘Ordinary Shares’) in the capital of the Company (the ‘Placing Shares’) at a price of 2.5 pence per Ordinary Share with new and existing investors in the UK and Australia (the ‘Placing’). The funds raised will be used for working capital requirements.
William Frewen, Chairman of Armadale said, “Over recent months Armadale has implemented a comprehensive cost reduction programme and I am happy to say that these funds should see the Company through to H2 2017, whilst we evaluate and prepare our exploration and development plan for the Mahenge Liandu Project in Tanzania. Our Mahenge Liandu Project is yielding encouraging results and we have proved up a high-grade JORC compliant inferred mineral resource estimate of 40.9Mt @ 9.41% TGC. We are expecting metallurgical test work results in the coming weeks, which we hope will further highlight the quality of our potential coarse flake graphite product and which will be a further important milestone as we look to advance Mahenge Liandu towards production in as short a timeframe as practicable.
“Importantly, it is worth noting that all three members of the board have participated in this placing, which both highlights our enthusiasm for the Mahenge Liandu Project and underlines our confidence in its value accretion potential moving forward.”
Details of the Placing:
The Placing is subject, inter alia, to admission of the Placing Shares to trading on AIM (‘Admission’), which is expected to occur at 8.00 a.m. on 23 January 2017. Application has been made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM. The Placing Shares will, when issued, rank pari passu in all respects with the Company's existing Ordinary Shares.
In addition, the Company is today issuing 1,250,000 Ordinary Shares to a service provider.
Following Admission, the Company therefore will have 238,296,310 Ordinary Shares in issue. The Company has no shares in treasury, therefore the figure of 238,296,310 should be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change of their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.
Following Admission, directors’ shareholdings in the Company will be:
| Director | Ordinary Shares subscribed for in the Placing | Total Ordinary Shares held on Admission | % of issued share capital held on Admission | ||||
| William Frewen | 1,000,000 | 2,000,000 | 0.84% | ||||
| Steve Mahede | 250,000 | 1,000,000 | 0.42% | ||||
| Nicholas Johansen | 300,000 | 800,000 | 0.34% |
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 Charles Zorab, Company Secretary | +44 20 7233 1462 | ||
| 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 Charlotte Page / Susie Geliher | +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.
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