Armadale Capital Plc Formal Agreement Reached for the Sale of the non-core Mpokoto Gold Project
11 January 2019 - 6:00PM
UK Regulatory
TIDMACP
Armadale Capital Plc / Index: AIM / Epic: ACP / Sector:
Investment Company
11 January 2019
Armadale Capital Plc ('Armadale' or 'the Company')
Formal Agreement Reached for the Sale of the non-core Mpokoto
Gold Project
Armadale, the AIM quoted investment company focused on natural
resource projects in Africa, is pleased to announce that it has
entered into final formal sale agreement with African Royalty
Company Pty Limited ("African Royalty") (a related company to Arrow
Mining Pty Ltd, "Arrow Mining") for the sale of the Mpokoto Gold
Project in the Democratic Republic of Congo ("Mpokoto Project").
This stage has been reached after Arrow Mining and African Royalty
completed due diligence and formal terms were finalised and agreed.
This agreement now crystallises the value of the Mpokoto Project
with a company capable of obtaining the funding to bring the mine
into production. The transaction allows Armadale to focus on
advancing its primary value driver, the high-grade Mahenge Liandu
Graphite Project in Tanzania, whilst ensuring the Company retains
exposure to the development upside of the Mpokoto Project.
Sale Terms
Arrow Mining will take over the operations on the Mpokoto
Project and is obliged to pay Armadale a 1.5% royalty on gold sales
achieved once in production. The Mpokoto Project has a feasibility
study based on a 720,000 tpa operation over 4.5 year producing an
average of 24,900oz per annum with a substantial sulphide resource
that could further extend the mine life.
Sale of the Mpokoto Project under the heads of agreement was
conditional upon entry into a formal sale agreement, due diligence
and other standard conditions for regulatory approvals and these
have now been satisfied.
Further Information
1. Funds from the Mpokoto Project royalty will be used to
support development of the high grade Mahenge Liandu Graphite
Project in Tanzania, and Armadale will consider other investment
opportunities in line with its existing investing policy.
2. The net assets relating to Mpokoto in the 30.6.18 balance
sheet (Interim results) were GBP194,000.
3. Armadale had previously entered into a joint venture
agreement with Kisenge Mining Pty Ltd ('Kisenge Mining') for the
Project. Kisenge Mining had withdrawn from the joint venture
agreement which allowed the formal agreement to proceed.
Nick Johansen, Director of Armadale said, "The Board of Armadale
is confident that African Royalty and its related parties, who have
significant experience of operating in the DRC, represents the best
opportunity for Armadale to crystallise the value of the Mpokoto
Project and begin receiving returns through the agreed royalty
payments on gold sales. We look forward to reporting further news
in due course relating to the development of Mpokoto and of our
primary value driver, the Mahenge Liandu Project."
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**
For further information, please visit the Company's website
www.armadalecapitalplc.com, follow Armadale on Twitter
@ArmadaleCapital or contact:
Enquiries:
Armadale Capital Plc +44 20 7236 1177
Tim Jones, Company Secretary
Nomad and broker: finnCap Ltd +44 20 7220 0500
Christopher Raggett / Max Bullen-Smith
Joint Broker: SVS Securities +44 20 3700 0093
Tom Curran / Ben Tadd
Press Relations: St Brides Partners Ltd +44 20 7236 1177
Susie Geliher / Juliet Earl
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 51.1Mt @ 9.3% TGC.
Marking the project 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.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20190110005600/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
January 11, 2019 02:00 ET (07:00 GMT)
Armadale Capital (LSE:ACP)
Historical Stock Chart
From Apr 2024 to May 2024
Armadale Capital (LSE:ACP)
Historical Stock Chart
From May 2023 to May 2024