10th Mar 2014 11:38
LONDON (Alliance News) - Armadale Capital PLC Monday announced that it has acquired an interest in ASX-listed Redcliffe Resources Ltd by investing AUD60,000 in the company.
The AIM-quoted investment company, focused on natural resource projects in Africa, said Redcliffe is focused on the exploration and development of the Mbesa Copper Project in Tanzania where rock chip sampling has shown initial grades of up to 14% copper.
Within the Mbesa zone, artisanal mining achieved roughly 622 tonnes of ore at an average copper grade of 22% in the last 12 months and Redcliffe intends to acquire a parcel of ore from the currently operating Mbesa mine.
The company said it believes Redcliffe is a strong investment opportunity and as a result became the cornerstone investor amongst a group that has invested AUD150,000 in Redcliffe at 1.5 cents per share, together with a free attaching option to each share, exercisable at 2 cents per share.
Armadale's AUD60,000 investment is for 4 million shares and 4 million options in Redcliffe and the company has been granted a further 5 million options exercisable in tranches of 1 million options at a price of 1.5 cents, 2 cents, 3 cents, 4 cents and 5 cents respectively.
It didn't specify what percentage of Redcliffe's share capital it had acquired as a result of the deal.
Armadale Capital shares were down 10% to 0.141 pence Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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