Armadale Capital Plc Funding Secured to Advance Development of Mahenge Liandu Graphite Project
20 October 2017 - 6:30PM
UK Regulatory
TIDMACP
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
GBP400,000 ('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 GBP400,000 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 GBP50,000
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 activities
Nick 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 +44 20 7236 1177
Tim Jones, Company Secretary
Nomad and broker: finnCap Ltd +44 20 7220 0500
Christopher Raggett / Simon Hicks
Joint Broker: Beaufort Securities Limited +44 20 7382 8300
Jon Belliss
Press Relations: St Brides Partners Ltd +44 20 7236 1177
Susie Geliher / Charlotte Page
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
View source version on businesswire.com:
http://www.businesswire.com/news/home/20171020005236/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
October 20, 2017 03:30 ET (07:30 GMT)
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