11th Jul 2016 09:36
LONDON (Alliance News) - Armadale Capital PLC on Monday said it has completed the acquisition of the Mahenge Liandu graphite project in south-east Tanzania.
Armadale, which invests in natural resource projects in Africa, bought the project through the issue of 57.5 million shares and GBP450,000 unsecured convertible loan notes to Graphite Advancement Pty Ltd, which owns the project.
Armadale said an exploration programme is underway and a drilling campaign is anticipated to commence in the third quarter of 2016.
"Graphite has been identified and prioritised by the Armadale team as a high demand commodity with significant strategic value as an essential component of the modern lithium-ion battery. The Liandu Project provides Armadale with ground-floor access to this rapidly growing market whilst limiting exploration risk, due to the project's location in a premier graphite bearing region, which includes being contiguous to well established high grade graphite projects," Chairman Peter Marks said in a statement.
Shares in Armadale were trading up 3.4% at 2.20 pence on Monday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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