TIDMACP
Armadale Capital Plc / Index: AIM / Epic: ACP / Sector:
Investment Company
13 October 2020
Armadale Capital Plc
('Armadale' or 'the Company')
Mahenge Graphite Project Update
Armadale Capital plc (LON: ACP) the AIM quoted investment group
focused on natural resource projects in Africa, is pleased to
provide an update on its 100%-owned Mahenge Graphite Project
('Mahenge').
HIGHLIGHTS
-- Front End Engineering Design ('FEED') of processing plant by
international engineering, procurement and construction company ('EPCM')
due to commence shortly upon selection of preferred construction group
-- Selection process at an advanced stage, with suitable strategies for the
development and construction of Mahenge already identified following a
detailed consultation process with a range of potential mining
contractors
-- Ready to initiate follow-up and final metallurgical test programme to
enable the detailed selection of the processing plant equipment
-- National Environmental Management Council ('NEMC') site visit completed -
one of the penultimate steps required for granting of the Environmental
Permit (ESIA approval) to facilitate the granting of the mining licence
-- Continue to advance ongoing project financing negotiations for mine
construction of Stage 1 of Mahenge's 60,000 tpa capacity
Armadale Chairman, Nick Johansen, commented:
"We are delighted to announce another crucial step forward in
the development of Mahenge. Appointing our chosen EPCM will mark
the commencement of the next preparatory phase of mine construction
and take us another step closer to production. In addition, the
completion and submission of the Environmental and Social Impact
Assessment (ESIA) is one of the final necessary components in the
Mining Licence process and I would like to thank all those involved
for their efforts in completing this important piece of work in
such a short time frame. Receipt of a Mining Licence will be one of
the final and most important de-risking milestones for the Project
and we look forward to being able to update further on this as we
work with NEMC to conclude the final licencing components.
"Alongside this, as previously indicated we continue to be
positively engaged in development funding options. Testament to
Mahenge's highly compelling project economics we have received
strong interest, and we are naturally committed to securing the
best option for our stakeholders. We will update shareholders on
further developments as soon as we are in a position to do so.
"With project financing, a mining licence and commencement of
mine construction all imminent, Mahenge, and indeed Armadale, is on
the cusp of transformation. Ultimately, Mahenge's value potential
is clear, and it is our responsibility and focus to convert this
into meaningful returns for our stakeholders. To deliver on this,
we have devised a staged development plan giving a fast-tracked,
low-cost route to production. This is truly an exciting time of
development."
Further Detail
Armadale has continued to focus on fast tracking Mahenge to
production. The Company has been engaging with potential
international manufacturing and construction companies as to their
suitability and capability to complete the graphite processing
plant in Tanzania.
A group of international companies have been short-listed with
final selection imminent, following which work will commence on the
FEED component. The first stage of the work will be for the
selected EPCM to complete a metallurgical test programme to enable
the detailed selection of the processing plant equipment.
Metallurgical testing has confirmed that Mahenge can produce high
quality, high purity graphite, with conventional technology
achieving consistent purity of above 97% TGC, some of the highest
grades in the sector, with identified target markets; a large
proportion of concentrates in the medium size fractions are
confirmed to be ideally suited to the battery market whilst coarser
grind sizes can retain a larger proportion of larger flake sizes,
suited to the expandable and graphite foil markets.
Throughout the Project's development, Armadale has continued to
engage with potential international mining contractors to develop
strategies for the construction and mining requirements of the
Project. This has assisted Armadale in developing a fit for purpose
approach in the development of the Project from construction to
production operations.
Positive progress also continues to be made on finalising the
Company's Mining licence application. The ESIA application for the
Project was submitted by Tanzanian based, registered and certified
environmental consultants to the NEMC in Tanzania in September
2020. A site visit has since been completed by NEMC, Armadale staff
and the Company's lead consultant as part of the ESIA application.
The presentation of key findings and recommendations by NEMC and
any satisfactory addressing of these findings in a final submission
will lead to the environmental certification being completed. The
completed certification is the final component required for the
granting of the Mining licence.
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**
Enquiries:
Armadale Capital Plc
Nick Johansen, Non-Executive Director
Tim Jones, Company Secretary +44 (0) 20 7236 1177
Nomad and broker: finnCap Ltd
Christopher Raggett / Teddy Whiley +44 (0) 20 7220 0500
Joint Broker: SI Capital Ltd
Nick Emerson +44 (0) 1483 413500
Press Relations: St Brides Partners Ltd
Charlotte Page / Beth Melluish +44 (0) 20 7236 1177
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 Indicated and inferred mineral resource estimate of
59.48Mt @ 9.8% TGC, making it one of the largest high-grade
resources in Tanzania. The project has been established as a large,
long life graphite deposit capable of producing high quality
graphite concentrate for the rapidly emerging EV market.
Metallurgical test work has confirmed that Mahenge can produce high
quality, high purity graphite, with conventional technology
achieving consistent purity of above 97% TGC, with 99.99% TGC
achievable, making its product suitable for both the high growth
EV/battery market and the expandable and graphite foil markets.
An optimised Definitive Feasibility Study ('DFS') established
that US$985m pre-tax cashflow could be generated from an initial
15-year mine life, utilising just 25% of the resource, which
remains open in multiple directions offering significant further
upside. Based on average annual production of large flake
high-purity graphite of 109ktpa, this led to an estimated pre-tax
NPV of US$430m and IRR of 91%. Armadale intends to deliver low
cost, fast-tracked production through a staged ramp-up plan,
beginning with 60,000tpa graphite concentrate production for the
first three years (Stage 1) before increasing to a life of mine
average of 109,000tpa (Stage 2). Stage 1 has a low capital cost
estimate of US$39.7m, including a contingency of U$S4.1m or 15% of
total direct capital cost with 1.6 year (after tax) payback period
from first production based on an average sales price of
US$1,112/t. Stage 2 expansion is to be funded from cashflow.
Other assets Armadale has an interest in include the Mpokoto
Gold project in the Democratic Republic of Congo and a portfolio of
quoted investments.
More information can be found on the website
www.armadalecapitalplc.com.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20201013005500/en/
CONTACT:
Armadale Capital Plc
SOURCE: Armadale Capital Plc
Copyright Business Wire 2020
(END) Dow Jones Newswires
October 13, 2020 05:00 ET (09:00 GMT)
Armadale Capital (LSE:ACP)
Historical Stock Chart
From Dec 2024 to Jan 2025
Armadale Capital (LSE:ACP)
Historical Stock Chart
From Jan 2024 to Jan 2025
