LONDON–(BUSINESSWIRE)–
14 August 2015
Armadale Capital Plc (‘Armadale’ or ‘the Company’)
£700,000 Raised via Placing to support production at Mpokoto Gold Project H1 2016
Armadale, the AIM quoted investment company focused on natural resource projects in Africa, is pleased to announce a conditional placing (‘Placing’) of 20,000,000 new ordinary shares of 0.1 pence each in the capital of the Company (‘Ordinary Shares’) (the ‘Placing Shares’) at a price of 3.5p pence per share (the ‘Placing Price’) to raise gross proceeds of £700,000 with institutional and other investors.
The proceeds of the Placing will allow Armadale to continue the development of its Mpokoto Gold Project in the Katanga Province of the Democratic Republic of Congo (‘Mpokoto’ or the ‘Project’), by commencing ground works in conjunction with drilling. This includes the completion of the Definitive Feasibility Study (‘DFS’), which is targeted for completion in Q3 2015. Mpokoto has a current resource of 678,000oz Au at 1.45 g/t gold (‘Au’), and is on track to commence production in H1 2016, targeting approximately 25,000oz Au per annum over a nine year life of mine.
Justin Lewis, Director of Armadale, said:
“Having recently raised £400,000, we are delighted to have further bolstered our cash balance with this £700,000 Placing. The funds raised will support the continued rapid development of our Mpokoto Gold Project, which is on track to commence commercial, low cost gold production in H1 2016. In conjunction with a drill programme aimed at expanding our current resource of 678,000oz Au, we look forward to the completion of our DFS in Q3 2015. We are optimistic that the results, will further enhance our already favourable Project economics, which includes a Net Present Valuation of US$ 32.3m based on a forecast gold price of US$ 1,100/oz.
“The completion of the DFS will represent another major development milestone and importantly form the basis of definitive agreements with Africa mining Contracting Services group (‘A-MCS’), to fund, construct and operate the Mpokoto mine. With funding secured and a defined route to production in place, which includes the recently finalised process route for gold recovery, I am delighted with the excellent progress we continue to make in advancing Mpokoto into production.”
Admission
The Placing is subject, inter alia, to admission of the Placing Shares to trading on AIM (‘Admission’), which is expected to occur at 8am on 20 August 2015. Application has been made to the London Stock Exchange for all of the Placing Shares to be admitted to trading on AIM. The Placing Shares will, when issued, rank pari passu in all respects with the Company’s existing Ordinary Shares.
Total Voting Rights
Following Admission, the Company will have 72,843,866 Ordinary Shares in issue. The Company has no shares in treasury, therefore the figure of 72,843,866 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.
**ENDS**
For further information please visit www.armadalecapitalplc.com or contact:
|
Company |
| Justin Lewis, Director +44 207 233 1462 |
| Charles Zorab, Investor Relations |
|
Nomad and broker: finnCap Limited |
| Christopher Raggett/Simon Hicks +44 207 220 0500 |
|
Joint Broker: Beaufort Securities Ltd |
| Jon Belliss +44 (0) 20 7382 8300 |
|
Joint Broker: VSA Capital Ltd |
| Andrew Raca: +44 203 005 5000 |
|
Press relations: St Brides Partners Ltd. |
| Hugo de Salis/Charlotte Heap +44 207 236 1177 |
Notes
Armadale Capital Plc is focused on investing in and developing a portfolio of investments, targeting the natural resources sector 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. Armadale’s primary project is the development of the Mpokoto Gold project in the Democratic Republic of the Congo, in which it owns an 80% interest. Mpokoto has a current Total Mineral Resource of 678,000 oz Au from 14.58 Mt @ 1.45g/t Au at a cut-off grade of 0.5g/t. An Expanded Scoping Study for Mpokoto demonstrated a post-tax net present value of US$ 55.3m based upon a discount rate of 8% and a gold price of US$ 1,250/oz. The Project is subject to four Mining Licences which are valid for an initial term of 30 years from 30 September 2014. Armadale also currently holds approximately a 30% interest in Mine Restoration Investments Ltd, a South African listed company, focused on the briquetting and sale of coal fines in KwaZulu Natal, as well as a number of other quoted investments.
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