2nd Jun 2016 07:41
LONDON (Alliance News) - Natural resources investment company Armadale Capital PLC on Thursday said it has signed a heads of agreement to acquire the Mahenge Liandu graphite project in Tanzania.
Armadale will acquire the project by issuing Armadale 80.0 million shares to Graphite Advancement Tanzania Pty Ltd, an Australian company which owns a 100% stake in the Mahenge Liandu project through a Tanzanian subsidiary.
Exploration drilling carried out on the site in December confirmed the prospectivity of the licence, Armadale said, and field work on the project will start following completion of the deal.
Armadale added it also has issued 3.0 million shares to advisers and consultants for the work carried out on the deal so far, though did not provide any details on the pricing of those shares.
"This transaction creates a significant opportunity for Armadale in an industry with exciting demand fundamentals. Graphite is a raw material in lithium ion batteries, which are used to power electric vehicles, as well as being a critical factor in the energy storage revolution currently taking place," said Armadale Chairman Peter Marks.
Armadale shares were down 15% to 1.38 pence early Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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