Armadale Capital Plc Armadale agrees to sell non-core Mpokoto Project
12 January 2018 - 6:00PM
UK Regulatory
TIDMACP
Armadale Capital Plc / Index: AIM / Epic: ACP / Sector:
Investment Company
12 January 2018
Armadale Capital Plc ('Armadale' or 'the Company')
Armadale agrees to sell non-core Mpokoto Project
Armadale, the AIM quoted investment company focused on natural
resource projects in Africa, is pleased to announce that it has
entered into a heads of agreement ('HOA') with Weghsteen Capital
Advice SA ('WCA') to sell its interest in the Mpokoto Gold Project
in the Democratic Republic of Congo ('Mpokoto') for total potential
consideration of US$562,500 and a 1.5% royalty on gold produced.
WCA is acting on behalf of Radismore Limited ('Radismore'), an
investment vehicle incorporated under BVI law, which is fully
funded and committed to starting gold production at Mpokoto within
two years. The HOA is subject to execution of a formal binding
agreement, which is expected Q1 2018.
Overview
-- Sale of Mpokoto for a total consideration of US$562,500 will be
payable in cash and completed in three stages:
US$75,000 on signing the purchase contract;US$187,500 within 12
months of signing; andUS$300,000 on commencement of production
-- The proposed agreement enables Armadale to maximise the value it
receives for Mpokoto whilst benefiting from future gold
production
through a 1.5% royalty
-- Sale of non-core investment asset enables Armadale to focus on fast
tracking the Mahenge Liandu Graphite Project ('Mahenge') - funds
from
Mpokoto will be used to support development - and consider
other
investment opportunities in line with the Company's existing
investing
policy
-- Agreement strengthens Armadale's strategic investment portfolio and
near-term production potential - Radismore is committed to
advancing
Mpokoto into gold production within two years, whilst
feasibility
studies at Mahenge in 2018 support a decision to mine being made
in
the near term
Nick Johansen, Director of Armadale said, " We are pleased to
have secured this strategic sales agreement and believe that
Radismore and its associates have the necessary funds and skill set
to advance Mpokoto into production and unlock the asset's value
potential. Crucially, we will retain an interest in Mpokoto through
a royalty without the burden of development and production cost.
This strategic interest in turn means that we can concentrate our
resources on developing the Mahenge Liandu Graphite project in
Tanzania, which offers near term development opportunity with
multiple value accretive milestones expected this year.A drilling
programme aimed at significantly increasing the size of the deposit
is planned for Q2 2018, whilst the results of a scoping study are
due Q1, and a feasibility study is expected to commence thereafter
with the objective of reaching a decision to mine in the near term.
We are very excited for the year ahead and look forward to updating
shareholders on these exciting developments and the finalisation of
the sale."
Further Information
Under the terms of the HOA, Armadale has agreed to sell its 80%
interest in Mines d'Or de Kisenge sarl ('MDDK'), which through
Kisenge Limited ('Kisenge'), a wholly owned subsidiary of Armadale,
holds Mpokoto. MDDK is owned 80% by Kisenge and 20% by Enterprise
Miniere de Kisenge-Manganese sarl ('KMC'), a Congolese government
owned entity.
Prior to this HOA, Armadale had previously entered into a joint
venture agreement with Kisenge Mining Pty Ltd ('Kisenge Mining')
for Mpokoto. Kisenge Mining has agreed to withdraw from the joint
venture agreement to allow the new HOA to proceed.
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
View source version on
businesswire.com:http://www.businesswire.com/news/home/20180111005750/en/
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