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375,000,000 new ordinary shares to be placed
Armadale, an AIM quoted investment company focused on natural resource projects in Africa, has announced a placing of 375,000,000 new ordinary shares of 0.01 pence each in the capital of the Company at a price of 0.14 pence per share to raise £525,000 (£485,000 after expenses), with institutional and other investors.
The proceeds of the Placing will be used for the continued development of the Mpokoto Gold Project in the Katanga Province of the Democratic Republic of the Congo as well as further potential investment opportunities.
Mpokoto has a current Total Mineral Resource of 510,000oz gold from 11.2 million tonnes @ 1.42g/t Au at a cut-off grade of 0.5g/t and an Exploration Target of 10Mt-15Mt at 1.2g/t-1.5g/t Au. The Company anticipates shortly publishing the results of a Scoping Study for Mpokoto, together with related metallurgical and environmental reports, which are expected before 31 March, in conjunction with submission of the Mining Licence application. The Scoping Study will define the next steps to be taken including a further drilling programme and additional metallurgical studies.
Peter Marks, Chairman of Armadale, said, “Armadale remains focused on the rapid development of the highly prospective Mpokoto Gold Project which has demonstrated its potential to become a low cost production asset. This funding will be used to continue the development of Mpokoto as well as look at other potential investment opportunities. With a strengthened cash position we look forward to commencing a drill programme to further prove up the current resource and to receiving the results of the Scoping Study this month, which will set out a clear pathway for the future development of Mpokoto.”
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 2 April 2014. 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 3,656,518,311 ordinary shares in issue. The Company has no shares in treasury, therefore the figure of 3,656,518,311 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.
