24th Oct 2018 11:43
LONDON (Alliance News) - Investment company Armadale Capital PLC said Wednesday it entered heads of agreement with Arrow Mining in relation to the proposed sale of its non-core Mpokoto Gold project, located in the Democratic Republic of Congo.
Arrow Mining will take over the operations on the project and will pay Armadale a 1.5% royalty on gold sales achieved once in production.
Sale of the Mpokoto project is conditional upon entry into a formal sale agreement, due diligence by Arrow Mining and other regulatory approvals.
Non-Executive Director Nick Johanses said: "The board of Armadale is confident that the Arrow Mining team, which has significant experience of operating in the Democratic Republic of Congo, represents the best opportunity for Armadale to crystallise the value of the Mpokoto project and begin receiving returns through the agreed royalty payments on gold sales."
Armadale said that previous negotiations regarding the sale have now ceased.
Last January, the company said it signed a heads of agreement with Weghsteen Capital Advice SA to sell its interest in the project.
Armadale shares were trading down 4.8% at 1.45 pence.
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