20th Jun 2016 10:40
LONDON (Alliance News) - Armadale Capital PLC Monday said analysis of rock chip samples from the Mahenge Liandu graphite project in south east Tanzania demonstrated high grade graphite mineralisation.
The AIM-listed natural resources investment company said that high grade graphite mineralisation of up to 33.8% total graphite content had been shown by the analysis of the samples.
Armadale is in the process of acquiring the project, and said it has now largely completed its due diligence in relation to it. The company expects to enter into a binding agreement to complete the buy of Graphite Advancement Tanzania Pty Ltd, which owns the project, shortly.
"The Liandu Project represents a compelling opportunity for Armadale to get exposure to the burgeoning graphite market, with modest near-term capital expenditure and limited risk. These samples further demonstrate the prospectivity of the project," said Chairman Peter Marks in a statement.
"In parallel with the development of the Liandu Project, Armadale continues to progress the funding of the Mpokoto Project. These discussions are ongoing with A-MCS, whom are continuing to review the definitive feasibility study. In addition, management continue to review ways to improve the economics of the project, including assessing alternative options for the processing plant that have the ability to reduce the overall capital requirement and reduce the time to production," Marks added.
Shares in Armadale were up 15.2% at 2.16 pence Monday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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