ARMADALE CAPITAL PLC: Project Finance Update
15 Junio 2020 - 04:00AM
UK Regulatory
TIDMACP
Armadale Capital Plc / Index: AIM / Epic: ACP / Sector:
Investment Company
15 June 2020
Armadale Capital Plc ('Armadale' or 'the Company')
Project Finance Update
Armadale Capital plc (LON: ACP), the AIM quoted investment group
focused on natural resource projects in Africa, is pleased to
report on progress with respect to project finance initiatives
ahead of construction for Phase 1 of its 80,000 tpa nameplate
capacity Mahenge Liandu Graphite Project ('Mahenge Liandu' or the
'Project') located in the world-class Mahenge Graphite province in
Tanzania.
Following on from the results of its updated Feasibility Study
delivered on 5 June 2020, the Company announces that it is now
under NDA with two separate parties with the aim of advancing
project level funding discussions with a view to bringing in an
investment partner to progress through to mine construction.
As part of specific workstreams running concurrent to the
recently delivered DFS, and in increasing intensity since its
completion, Armadale and its technical and financial advisors have
been engaging with a number of potential strategic investors or
possible joint venture partners.
The interest from parties thus far ranges from potential small
to medium size project development funding at an 'investor' level
from reputable Private Equity Mining specialists, through to
possible Engineering, Procurement and Construction Management
(EPCM) partnerships with internationally recognised construction
management and contracting groups.
Due diligence from certain parties is progressing well and the
Company is in the process of helping all parties with detailed
evaluations of the technical and financial aspects of Mahenge
Liandu with a view to progressing to a potential partnership to
progress to mine development and production.
In addition, the Company is also advancing separate discussions
with a number of Asian parties and hopes to provide further
announcements with respect to further progress on development
funding in the near-term.
Armadale Chairman, Nick Johansen, commented:
"Following the delivery of last week's updated DFS, which
underscored the exceptional potential of the Mahenge Liandu
Graphite Project, we have continued working to our stated plan of
pursuing multiple workstreams to fast-track development. Indeed, it
is a testament to the highly compelling project economics that
potential development funding interest is so strong at this early
stage.
"It is also encouraging to note the level of funding interest in
other graphite development projects in the Mahenge area which also
share many of the attractive characteristics of our project. For
Armadale, finalising an agreement with a potential strategic
investor or joint venture partner will represent an extremely
important milestone for Armadale and we are fully committed to
advancing these discussions whilst also continuing to progress
workstreams in relation to Detailed Design Engineering, and the
finalisation of the Company's application for a full Mining
Licence.
"Armadale has delivered a number of key value accretive
milestones in recent months and we look forward to maintaining this
momentum in the near term in order to continue to build value for
shareholders."
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
Susie Geliher +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's primary focus is the Mahenge Liandu graphite
project a long-life low-cost graphite development project in
south-east Tanzania. Mahenge Liandu is located in a highly
prospective region and is projected to produce 109,000 tonnes of
large flake high-purity graphite per annum. The Project has
demonstrated robust economics with headline figures including a
pre-tax NPV of US$430m and IRR of 91%. An updated DFS produced in
June 2020 forecasted pre-tax cashflow of US$985m to be generated
from an initial 15 year mine life, utilising just 25% of the
resource. The Resource remains open in multiple directions offering
significant further upside.
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/20200615005270/en/
CONTACT:
Armadale Capital Plc
SOURCE: Armadale Capital Plc
Copyright Business Wire 2020
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