Armdale "placing to raise £500k"

PUBLISHED: 06 Dec 2013 @ 12:24 | Comments (0) |

Armadale (LSE:ACP), the AIM quoted investment company focused on natural resources projects in Africa, has confirmed the placing of 305,555,800 new ordinary shares of 0.01 pence each in the capital of the Company at a price of 0.18 pence per share to raise £550,000 before expenses, with institutional and other investors.

The proceeds of the Placing will be applied to the work programme at the Mpokoto Gold project, in the Katanga Province of the Democratic Republic of Congo (‘Mpokoto’ or ‘the Project’) in which the Company has the right to an 80% interest. The Company is targeting commercial gold production from Mpokoto in the next 24 months.

Armadale will also continue to evaluate other natural resources and infrastructure projects in Africa in accordance with its Investing Policy.

Peter Marks, Chairman of Armadale, said, “Having recently completed the acquisition of a right to an 80% interest in the highly prospective Mpokoto Gold Project in November 2013, we are focussed on rapidly advancing the Project with the ultimate aim of targeting commercial gold production in the next 24 months. This raising is another step in this development, enabling us to undertake further work to develop the Project’s value, which has a current JORC resource of 380,000 oz gold. I look forward to updating shareholders on our continued progress in due course.”

The Placing is subject, inter alia, to admission of the Placing Shares to trading on AIM, which is expected to occur at 8.00 a.m. on 17 December 2013. Application has been made to the London Stock Exchange for all of the Placing Shares to be admitted to trading on AIM. The Placing Shares will, when issued, rank pari passu in all respects with the Company’s existing ordinary shares.

Following admission of the Placing Shares, the Company will have 3,196,596,950 ordinary shares in issue. The Company has no shares in treasury, therefore the figure of 3,196,596,950 should be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change of their interest in, the share capital of the Company under the FCA’s Disclosure and Transparency Rules.

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