LONDON (ShareCast) - (ShareCast News) - Natural resources-focussed investment company Armadale Capital announced on Friday that the company has agreed a financing facility with a consortium of "high net worth individuals" to provide up to £0.4m in support of the continued development of the Mahenge Liandu Graphite Project in Tanzania, and the completion of a feasibility study in the first half of 2018.
The AIM-traded firm said the facility would be available at the discretion of the company in £50,000 instalments, and would remain available until 20 October 2019.

It said the interest rate payable on drawn-down funds would be 10% per annum, and the drawn-down balance of the facility would be repayable in full at the maturity date.

The lender had the option to convert the loan to shares at a 10% discount to the volume-weighted average price of an ordinary share for the 10 trading days immediately prior to the maturity date, Armadale explained.

There was also a facilitation fee of 3% on any drawn funds, and Armadale would issue 500,000 ordinary shares in lieu of advisory fees relating to the origination of the facility.

"This facility ensures our ongoing work programme and that development activities at Mahenge Liandu can continue unimpeded, as we advance our strategy to demonstrate the commercial scale, quality and strategic importance of this graphite asset to strategic investors and customers," said Armadale director Nick Johansen.

"In line with this, the bulk sample test work which we have previously announced is nearing completion with samples to be provided to potential off take partners, and I look forward to reporting on this in due course.

"In tandem with this, our feasibility work continues to advance and we are targeting the publication of a feasibility study in the first half of 2018."

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