LONDON (ShareCast) - (ShareCast News) - Natural resource investor Armadale Capital said it had raise £0.963m through a placing of 58.4m new shares at 1.65 pence each with new and existing investors in the UK and Australia.
The AIM-quoted investment company focused on natural resource projects in Africa said the funds raised will be used to commence work on a feasibility study at the Mahenge Liandu graphite project in Tanzania, ahead of an intended decision to mine in early 2019, together with funding working capital requirements.

Armadale director Nick Johansen said a recently published scoping study at Mahenge Liandu established the project as a "high value, low capex development asset" with a net present value of of $349m, internal rate of return of 122% and 1.2-year payback period, with "potential to be fast-tracked into production in a short timeframe".

"Coupled with the highly encouraging test results received from bulk sample test work, which produced graphite concentrates with exceptional purity of up to 99.1% total graphitic carbon, the development value of Mahenge Liandu is evident, and it is with this in mind that I am delighted to report that our feasibility study will be able to commence in earnest following today's raising," he said.

Johansen said it was "worth noting that certain members of the board and senior management have participated in this placing, which both highlights our enthusiasm for this project and underlines our confidence in its value accretion potential moving forward".

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