Armadale Capital Plc (LON:ACP) Interim Results & Strategic Financing

Nick Johansen Director of Armadale said: The first half of 2019 has seen us increasingly demonstrate Armadale’s transition from explorer to emerging miner.

At the centre of this has been the development of our wholly-owned Mahenge Liandu Graphite Project towards production via the advancement of the DFS. Upon completion, we expect the DFS to confirm the compelling economics of the Project, which has an NPV, per the 2018 Scoping Study, of US$349m and an IRR of 122%.

Highlights:

  • Primary focus on the rapid advancement of 100% owned Mahenge Liandu Graphite Project in Tanzania (“Mahenge Liandu” or the “Project”) and as announced on 29 May 2019, the accelerated transition from explorer to emerging miner;
  • In February 2019, a Memorandum of Understanding (“MOU”) was signed for the proposed offtake of 30,000tpa of graphite concentrate produced at Mahenge Liandu for an initial five-year term at a price to be agreed based on the Chinese benchmark for the quality of the graphite produced, representing over 60% of average target annual production;
  • Project Definitive Feasibility Study (“DFS”) under preparation in the period and post period end and on track for completion in Q4 2019;
  • Reverse circulation assays received in the period and post period end, showing high grade Total Graphitic Carbon (“TGC”) up to 22.8% from near surface, notably in respect of the area expected to be the focus for initial mining;
  • Metallurgical test work undertaken in the period showed highly positive outcomes post period end with up to 97.1% purity for large and medium flake fractions, with downstream test work now underway and focused on production of battery cells, a key data point for prospective Chinese offtake partners;
  • DFS will incorporate recently received high grade assay data and positive metallurgical test results to deliver a DFS building on the robust economic fundamentals delivered through Scoping Study in March 2018 which included:
    • NPV of US$349 million
    • IRR of 122%
    • Payback of 1.2 years
    • Low capex of US$35 million
  • Strategic financing undertaken in February 2019 raising £795,275 for continuation of DFS preparatory activities and Paul Johnson (former CEO of Metal Tiger plc (LON:MTR) and current CEO of Power Metal Resources plc (LON:POW)) appointed to the Armadale board in March 2019 as Non-executive director;
  • Multiple work streams underway at the end of the interim period, currently including resource update, mine/plant design and commercial discussions with prospective Chinese offtake and project level construction finance partners.
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Full Update Link HERE www.share-talk.co.uk/announcements/bus/armadale-capital-plc

 

Strategic Financing

Armadale Capital plc (LON:ACP) the AIM quoted investment company focused on natural resource projects in Africa, is pleased to announce a strategic financing raising £500,000 for the Company at 1.80p per share.

Significantly this strategic financing is intended to provide the Company with sufficient working capital to progress its 100% owned Mahenge Liandu project (“Mahenge Liandu” or the “Project”) through completion of the Definitive Feasibility Study (“DFS”) and to bring the Project to the point of project level construction financing.

Highlights:

  • Armadale has completed a strategic financing raising £500,000 through a placing and subscription of 27,777,778 new ordinary shares (“Financing Shares”) at a price of 1.8p per Financing Share
  • Each Financing Share has an attaching warrant (“Financing Warrant”) to subscribe for a further new ordinary share at a price of 3.0p with a life to expiry of 3 years from admission of the Financing Shares
  • Importantly, the additional working capital will be applied principally to the completion of the Project DFS and for follow on and associated activities to bring Mahenge Liandu to the point of project level construction financing
  • Project level financing discussions in respect of the cost of Project construction are in progress with third parties
  • Further updates to follow in respect of activities in relation to the DFS and commercial discussions in respect of the Project

Nick Johansen, Director of Armadale said: “We are delighted to have completed this strategic financing at a premium to the market price and a 64% premium to the last financing undertaken by the Company in March 2019. We are thankful to all current shareholders, and those who invested in the strategic financing, for their support and engagement with the Company.

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“The Company is now moving at pace to complete the Mahenge Liandu DFS and associated work streams and as previously stated we are focusing more definitively on our commercialisation plans, especially off-take and project level finance agreements, to ensure the transition from explorer to emerging producer continues to gain momentum.

“Further announcements are expected in the near future across various project related activities.”

Full Update Link HERE www.share-talk.co.uk/announcements/bus/armadale-capital-plc

 

 


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