LONDON (ShareCast) - AIM-listed Armadale Capital, which is focused on natural resource projects in Africa, has placed 375m shares to raise funds for the continued development of the Mpokoto Gold Project in the Katanga Province of the Democratic Republic of the Congo.

At 0.14p a share, the placing raised £485,000 after expenses, some of which will be used for other potential investment opportunities.

Mpokoto has a current total mineral resource of 510,000 ounces of gold. The group expects to release a scoping study before the end of the March, together with the submission of a mining licence application.

Chairman Peter Marks 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 share price fell 4% in early trading.

NR

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