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Armadale Capital Plc, the AIM quoted investment company, has further diversified its investment portfolio through the acquisition of an interest in ASX listed Redcliffe Resources Limited (ASX:RCF).
Redcliffe is focused on the exploration and development of the highly prospective Mbesa Copper Project in Tanzania where initial grades of up to 14% copper have been returned from rock chip sampling. In line with Armadale’s investment objectives, the Company believes Redcliffe represents an interesting investment opportunity, and as a result is the cornerstone investor, investing A$60,000 (c£32,000), amongst a group that has invested a total of A$150,000.
Mbesa is located within the Tunduru region in southern Tanzania, and has demonstrated occurrences of high grade copper in a producing but as yet underexplored copper region. Within the Project area there is current artisanal mining, where the owners of the mines have advised Redcliffe that approximately 622 tonnes of ore at an average copper grade of 22% was produced in the last 12 months. Furthermore, analyses of rock chip samples by Redcliffe from within the general area of the mines returned grades of up to 14% copper, underpinning the area’s prospectivity. As part of on-going project evaluation, Redcliffe intends to acquire a parcel of ore from the currently operating Mbesa mine.
This ore will enable Redcliffe to undertake metallurgical test works at a much earlier stage than would normally be possible in such a project, to provide a better understanding of mineralogy and grade to assist in planning.
Armadale has led a group of investors that has invested a total of A$150,000 (c£80,000) in Redcliffe at 1.5 cents per share together with a free attaching option to each share, exercisable at 2c per share. Armadale has invested A$60,000 (£32,000) for a total of 4,000,000 shares and 4,000,000 options. In addition Armadale has been granted a further 5 million options exercisable in tranches of 1 million options at a price of 1.5c, 2c, 3c, 4c & 5c respectively.
Justin Lewis, Director, commented “We are delighted to have participated in this placing which further diversifies Armadale’s investment portfolio, providing the Company with exposure to a high grade copper asset. This expands our investment proposition, which also includes our majority interest in the Mpokoto Gold Project in the Democratic Republic of Congo and our 40% interest in South African coal processing and briquetting company Mine Restoration Investments, giving investors a unique blend of early stage exploration upside and cash generating projects across a spectrum of commodities.
“We are very encouraged by the initial exploration work that Redcliffe has reported from the Mbesa Copper Project, and we look forward to an exciting pipeline of news flow from the Redcliffe management team.”
