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Armadale (LSE:ACP), an AIM quoted investment company focused on natural resources projects in Africa, has that it has agreed to acquire a loan note of US$250,000 in Netcom Global,a wholly owned subsidiary of Armadale, by the issue of 84,921,361 new ordinary shares of 0.01 pence each in the capital of the company to the holder of the Loan. The loan holder has agreed, for a period of one year following their issue, not to dispose of the Loan Shares without the Company’s consent, not to be unreasonably withheld.
The acquisition of the loan removes all indebtedness from the Company’s flagship Mpokoto Gold Project in the south of the Democratic Republic of Congo and allows the Company to apply the entire funds of the placing announced on 5 December 2013 to the progression of its work programme.
Peter Marks, Chairman of Armadale, said, “The acquisition of the Loan in Netcom further cements our investment in the company, through which we hold a right to an 80% interest in the highly prospective Mpokoto Gold Project, which has a current JORC resource of 380,000oz gold. Following the placing of £550,000 earlier this month we are well placed to rapidly develop the Project and remain focussed on targeting commercial low-cost gold production in the next 24 months.”
Application has been made to the London Stock Exchange for the Loan Shares to be admitted to trading on AIM, which is expected to occur at 8.00 a.m. on 17 December 2013. The Loan Shares will, when issued, rank pari passu in all respects with the Company’s existing ordinary shares.
Following Admission, the Company will have 3,281,518,311 ordinary shares in issue. The Company has no shares in treasury, therefore the figure of 3,281,518,311 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.
