Last checked at 18 Dec 2015 09:30
Armadale Capital Plc / Index: AIM / Epic: ACP / Sector: Investment Company
18 December 2015
Armadale Capital Plc (‘Armadale’ or ‘the Company’)
Raises £420,000 to advance Mpokoto Gold Project
Armadale, the AIM quoted investment company focused on natural resources projects in Africa, is pleased to announce a conditional placing (‘Placing’) of 14,000,000 new ordinary shares of 0.1 pence each in the capital of the Company (‘Ordinary Shares’) (the ‘Placing Shares’) at a price of 3p pence per share (the ‘Placing Price’) to raise gross proceeds of £420,000 with institutional and other investors.
Proceeds of the Placing will support the next steps in the development of the Company’s Mpokoto Gold Project in the Katanga Province of the Democratic Republic of Congo (‘Mpokoto’ or the ‘Project’), including completion of the Definitive Feasibility Study (‘DFS’), continued ground works at the site, as well as providing general working capital. Mpokoto has a current resource of 678,000oz Au at 1.45 g/t gold (‘Au’), and is on track to commence production in 2016, targeting approximately 25,000oz Au per annum over a nine year life of mine. Metallurgical testwork recently completed at the Project as part of the DFS has confirmed the effectiveness of Armadale’s planned low cost two phase processing route, which, due to its module design, is expected to minimise upfront capital expenditure and reduce ongoing operating costs, supporting projected cash costs of US$647/oz.
Peter Marks, Chairman of Armadale, said, “We are pleased to have raised £420,000 as we approach the final phase of our DFS. Having recently completed additional metallurgical testwork, which has confirmed the value of our cost effective processing route, we are now focused on the completion of the DFS. As we look to finalise the DFS, we of course also approach the final hurdle to the conclusion of our financing agreement with A-MCS for up to US$20 million. With this in mind, 2016 should be a historic year for the Company and we look forward to delivering on the major development milestones ahead.”
Admission
The Placing is subject, inter alia, to admission of the Placing Shares to trading on AIM (‘Admission’), which is expected to occur at 8am on 24 December 2015. Application has been made to the London Stock Exchange for all of 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.
Total Voting Rights
Following Admission, the Company will have 88,010,533 Ordinary Shares in issue. The Company has no shares in treasury, therefore the figure of 88,010,533 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.
**ENDS**
Enquiries:
Company
Peter Marks, Chairman
Andrew Tunks, Director
Charles Zorab +44 207 233 1462
Nomad and joint broker: finnCap Limited
Stuart Andrews/ Christopher Raggett +44 207 220 0500
Joint broker: Beaufort
Jon Belliss +44 20 7382 8300
Press relations: St Brides Media & Finance Ltd.
Susie Geliher/Charlotte Heap +44 207 236 1177
More information can be found on the website www.armadalecapitalplc.com
Notes
Armadale Capital Plc is focussed 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 focussed 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. 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.
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