29th May 2019 12:02
LONDON (Alliance News) - Natural resources-focused investment firm Armadale Capital PLC said Wednesday it has accelerated plans to commercialise the Mahenge Liandu graphite project in Tanzania ahead of the completed feasibility study.
Armadale has scheduled key meetings with Chinese off-take and project finance partners scheduled for early June, with the intent to progress with binding agreements.
Also, the company will continue its review of graphite plant design with a capacity of 400 kilotonnes per annum. This is progressing with experienced Chinese partners, it said.
The feasibility study is on-track to be completed by the end of 2019 and now will include the current engineering, procurement and construction pricing of the plant.
In addition, a graphite resource update is underway, and is targeted for completion by the end of June.
Metallurgical test work on fresh samples are underway, and the testing of ground water suitability for mine use is nearing finalisation.
"Looking beyond the completion of the DFS, which is targeted for year-end, the board is now focused on fast-tracking the various work streams critical to bringing the Mahenge Liandu graphite project into commercial production," said Director Nick Johansen.
"Our most important task is to ensure that a high-purity graphite product, which attracts a material price premium, can be consistently produced. This will deliver greater visibility of the true value of the project to our potential Chinese partners which will in turn further support the significant progress being made to sign binding off-take and project finance agreements as soon as practical," Johansen added.
Shares in Armadale Capital were up 1.5% at 1.17 pence on Wednesday in London.
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