Armadale Capital raises £0.65m through placing

Africa-focused natural resources investment company Armadale Capital announced on Wednesday that it has raised £0.65m through the placing of 26,030,000 new ordinary shares of 0.1p each in the capital of the company, at a price of 2.5p per ordinary share with new and existing investors in the UK and Australia.

The AIM-traded firm said the funds raised will be used for working capital requirements.

“Over recent months Armadale has implemented a comprehensive cost reduction programme and I am happy to say that these funds should see the company through to H2 2017, whilst we evaluate and prepare our exploration and development plan for the Mahenge Liandu Project in Tanzania,” said chairman William Frewen.

“Our Mahenge Liandu Project is yielding encouraging results and we have proved up a high-grade JORC compliant inferred mineral resource estimate of 40.9Mt @ 9.41% TGC.”

Frewen said the company was expecting metallurgical test work results in the coming weeks, which it hopes will further highlight the quality of its potential coarse flake graphite product, and which will be a further important milestone as it looks to advance Mahenge Liandu towards production in as short a timeframe as practicable.

“Importantly, it is worth noting that all three members of the board have participated in this placing, which both highlights our enthusiasm for the Mahenge Liandu Project and underlines our confidence in its value accretion potential moving forward.”