Armadale Capital Plc Proposed Sale of the non-core Mpokoto Gold Project
October 24 2018 - 4:08AM
UK Regulatory
TIDMACP
Armadale Capital Plc / Index: AIM / Epic: ACP / Sector:
Investment Company
24 October 2018
Armadale Capital Plc ('Armadale' or 'the Company')
Proposed 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 new heads of agreement with Arrow Mining which
provides for the sale of the Mpokoto Gold Project in the DRC
("MpokotoProject"). Previous negotiations with parties for the sale
of the Project, as referred to in Armadale's 12 January 2018
announcement, have ceased. This new transaction is intended to
crystallise the value of the Mpokoto Project with a company capable
of obtaining the funding to bring the mine into production. The new
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 pa with a substantial sulphide resource that
could further extend the mine life.
Sale of the Mpokoto Project under the heads of agreement is
conditional upon entry into a formal sale agreement, due diligence
by Arrow Mining and other standard conditions for regulatory
approvals.
Further Information
1. Funds from the Mpokoto Project royalty will be used to
support development the high grade Mahenge Liandu Graphite Project
in Tanzania, and Armadale will consider other investment
opportunities in line with its existing investing policy.
2. Armadale had previously entered into a joint venture
agreement with Kisenge Mining Pty Ltd ('Kisenge Mining') for the
Project. Kisenge Mining has agreed to withdraw from the joint
venture agreement to allow the new heads of agreement to
proceed.
About Arrow
Arrow Mining is a privately owned South African based gold
mining and exploration company with its principal activities
focused on advanced projects in the DRC, South Africa and Zimbabwe.
The CEO of Arrow Mining, Jason Brewer, who has extensive experience
in Africa's mining and exploration sectors and in particular in
successfully raising debt and equity capital and developing mining
projects in the DRC. Arrow's shareholders include a number of
Australian, Asian and South African based investment groups.
Nick Johansen, Director of Armadale said, "The Board of Armadale
is confident that the Arrow Mining team, which has 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 appreciate this process has been more protracted than
originally envisaged, but Arrow Mining comes with it a proven track
record in raising debt and equity capital and developing mining
projects in the DRC which places it in a strong position to quickly
progress development at the Mpokoto Project and work towards
delivering first gold production. We look forward to reporting
further news in due course."
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/20181024005304/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
October 24, 2018 04:08 ET (08:08 GMT)
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