Last checked at 29 Jun 2015 09:00
Armadale Capital Plc (‘Armadale’ or ‘the Company’)
Proposed acquisition by investee company, MRI
Armadale, the AIM quoted investment company focused on natural resource projects in Africa, notes the announcement by Mine Restoration Investment Limited (‘MRI’), that it has entered into a memorandum of agreement to acquire up to a 39.2% interest in Iron Mineral Beneficiation Services Proprietary Limited (‘IMBS’). In conjunction with the acquisition MRI is planning to raise ZAR200 million (£10.4m) through a private placement of MRI shares at ZAR0.07 per share.
The Company currently holds 249,260,787 MRI shares, which at ZAR0.07 per MRI share, values Armadale’s investment in MRI at approximately ZAR17.5 million (£0.91 million). As previously announced, the Company has been actively looking to realise its investment in MRI and the Directors believe this proposed acquisition and fundraising by MRI will facilitate this process as well as underpinning the value of its shareholding in MRI.
The full text of the announcement can be found at www.minerestoration.co.za.
Justin Lewis, Director of Armadale, said, “We are encouraged by this proposed significant acquisition by MRI of an interest in IMBS. IMBS, through its subsidiary, is a substantial processor of iron ore fines at Phalaborwa in South Africa, with significant strategic investors. It is pleasing that the directors of MRI believe they are able to gain investor support through a substantial fundraising at 7 cent per share. This underpins the value of Armadale’s investment and we believe will facilitate the process to realise our investment, which we look forward to updating shareholders on.”
**ENDS**
Enquiries:
Company
Justin Lewis, Director +44 207 233 1462
Charles Zorab, Investor Relations
Nomad and broker: finnCap Limited
Christopher Raggett/Simon Hicks +44 207 220 0500
Joint Broker: VSA Capital Limited +44 203 005 5000
Bhavesh Patel/Richard Buckle
Press relations: St Brides Media & Finance Ltd.
Hugo de Salis/Charlotte Heap +44 207 236 1177
Notes
Armadale Capital Plc is focused on investing in and developing a portfolio of investments, targeting the natural resources sector 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 potential businesses where it can take an active role in their advancement.
Armadale owns 80% of the Mpokoto Gold Project in the Democratic Republic of Congo. Armadale is focused on proving up the resource potential of Mpokoto with a view to commencing commercial gold production.
Armadale also holds approximately a 30% interest in Mine Restoration Investments Ltd, a South African listed company, which aims to develop profitable operations within the South African mining industry through its coal processing operation in KwaZulu Natal.
In addition, Armadale has a small portfolio of listed investments which are focused on gold and copper production and exploration. The Directors continue to maintain an active acquisition strategy and will review investment opportunities that they believe have the potential to be accretive in terms of shareholder value.
More information can be found on the website www.armadalecapitalplc.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150629005462/en/
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