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Placing to raise £270,000
Armadale, the AIM quoted investment company focused on natural resource projects in Africa, has announced a conditional placing of 966,666,663 new ordinary shares of 0.01 pence each in the capital of the Company at a price of 0.03p pence per share to raise net proceeds of £270,000 with institutional and other investors.
In addition, the Company has issued 99,999,999 new Ordinary Shares to certain advisers at the Placing Price to settle advisory fees.
Armadale also announces by mutual agreement that there will be no further drawdowns from the Company’s flexible funding option with Bergen Global Opportunity Fund, LP, an institutional investment fund.
The proceeds of the Placing will be used for the continued development of the Mpokoto Gold Project in the Katanga Province of the Democratic Republic of the Congo, which has a resource of 678,100oz Au. It will also provide general working capital for the Company as it continues discussions with potential funding partners to secure the $20 million of capital required to commence construction of the Project ahead of commencing commercial gold production in H1 2016.
Armadale recently announced further positive metallurgical testwork on a number of samples of oxide ore from Mpokoto which confirmed gold recovery of 84-92% from the ore. The Company is now finalising a definitive feasibility study on the Project which advances the work already undertaken as part of the Expanded Scoping Study.
Peter Marks, Chairman of Armadale, said:
“We are pleased with the continued support of the capital markets and the shareholders of Armadale as we continue to advance the Mpokoto Gold Project. These funds will allow us to progress the definitive feasibility study in the near term, which is targeted for completion in Q2 2015, and will provide us with a stable footing from which to continue our negotiations with regard to the financing required to commence construction of the Project. We look forward to advancing Mpokoto into production in H1 2016 as a low capex gold project, with a post-tax NPV of US$55.3 million and steady state production of 25,600oz over a nine year life of mine.”
