Last checked at 8 Jun 2015 07:00
Armadale Capital Plc / Index: AIM / Epic: ACP / Sector: Investment Company
8 June 2015
Armadale Capital Plc (‘Armadale’ or ‘the Company’)Repayment and termination of Bergen Facility
Armadale, the AIM quoted investment company focused on natural resource projects in Africa, announces that it has entered into an agreement with Bergen Global Opportunity Fund, LP (“Bergen”) to repay the balance of the convertible security issued to Bergen on 16 October 2014 and terminate its funding agreement with Bergen.
The amount of the previously issued convertible security that is currently outstanding, US$242,815, will be repaid in full. In addition, in consideration of Bergen agreeing to an early repayment, the Company has agreed to make a payment of £30,000, in cash or shares at the option of the Company, on or before 1 August 2015. Bergen has confirmed it currently holds no shares in the Company.
In order to fund the repayment of the convertible security, the Company has issued three non-convertible unsecured loan notes (‘Notes’) for an aggregate value of £200,000. The Notes accrue interest at 12 per cent per annum, payable upon repayment. The Notes are repayable 6 months from the date of issue. The holders of the Notes have been issued warrants over a total of 437.5 million new ordinary shares, exercisable at 0.0225p per share, for a period of three years.
**ENDS**
Enquiries:
| Armadale Capital | ||
| Charles Zorab, Company Secretary | +44 20 7233 1462 | |
| Nomad and broker: finnCap Limited | ||
| Stuart Andrews | +44 207 220 0500 | |
| Christopher Raggett | ||
| Joint broker: VSA Capital Limited | ||
| Bhavesh Patel/Richard Buckle | +44 203 005 5000 | |
| Press relations: St Brides Media & Finance Ltd. | ||
| Susie Geliher | +44 207 236 1177 | |
| Charlotte Heap | ||
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 businesses where it can take an active role in their advancement.
Armadale is focused on the development of the Mpokoto Gold project in the Democratic Republic of the Congo, in which it owns an 80% interest. Mpokoto has a current Total Mineral Resource of 678,000 oz gold (‘Au’) from 14.58 million tonnes (‘Mt’) @ 1.45g/t Au at a cut-off grade of 0.5g/t. The Company has recently announced the results of an Expanded Scoping Study for Mpokoto which demonstrated a post-tax net present value of US$55.3m based upon a discount rate of 8% and a gold price of US$1,250/oz. The Project is subject to four Mining Licences which are valid for an initial term of 30 years from 30 September 2014.
Armadale also currently holds approximately a 30% interest in Mine Restoration Investments Ltd, a South African listed company, which aims to develop profitable operations in South Africa through the briquetting and sale of coal fines in KwaZulu Natal, as well as a number of other quoted investments.
More information can be found on the website www.armadalecapitalplc.com.
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