Armadale Capital Plc / Index: AIM / Epic: ACP / Sector: Investment Company
10 January 2014
Armadale Capital Plc (‘Armadale’ or ‘the Company’)
Investment portfolio update
Armadale, the AIM quoted investment company focused on natural resource projects in Africa, is pleased to provide an update on its investment portfolio, outside the Company’s principal investments in the Mpokoto Gold Project in the south of the Democratic Republic of Congo and Mine Restoration Investments Limited (‘MRI’), which has coal briquetting and acid mine drainage technology in South Africa.
In mid-2013 the Company made investments in three quoted gold companies. Since then the Company has realised its investment in New Talisman Mines Limited (ASX:NTL) at a profit and has recently crystallised the value of its investment in Stonewall Resources Limited (ASX:SWJ) for £65,000, marking a profit of £15,000 on it original investment. Lastly, Armadale continues to hold its investment in West Wits Mining Limited (ASX:WWI), which continues to trade at a premium to its investment price. The directors of Armadale are regularly reviewing opportunities to make investments in quoted companies where they believe they can achieve positive returns for shareholders.
As announced on 19 July 2013, the Company also has an outstanding loan, which currently stands at approximately ZAR 15 million plus accrued interest, to Trinity Asset Management Pty Limited (‘TAM’) which was put in place as part of the disposal of Armadale’s then operating business to MRI in 2012. This loan is due to mature shortly (12 January 2014) but the sums due are not expected to be paid by TAM to Armadale. The Company is currently in discussions with TAM as to the timing of its repayment. Armadale will update shareholders as and when these discussions have been concluded.
Justin Lewis, Director, said, “In addition to our major investments in the Mpokoto Gold Project and MRI, the Company has had a portfolio of shorter term investments to support our investment objectives. We are pleased to note that these have continued to perform well since investment, and Armadale has been able to crystallise value from a substantial proportion of them at a healthy profit. We are pleased that MRI continues to make good progress towards the commercialisation of its operations.
“This investment portfolio supports the development of our investment in the Mpokoto Gold Project, which we plan to rapidly develop in order to commence gold production in 2015, and MRI, where commercial coal briquetting operations began in November 2013. Consequently I believe we hold a strategic investment position, providing investors with upside opportunities to a range of commodities at various stages of development. I look forward to updating shareholders on future developments in due course.”
|Justin Lewis, Director||+61 439 162369|
|Charles Zorab||+44 207 233 1462|
Nomad and broker: finnCap Limited
|Stuart Andrews/ Christopher Raggett||+44 207 220 0500|
Press relations: St Brides Media & Finance Ltd.
|Susie Geliher/Charlotte Heap||+44 207 236 1177|
More information can be found on the website www.armadalecapitalplc.com
Armadale Capital Plc is focussed on investing in and developing a portfolio of investments, targeting the natural resources and/or infrastructure sectors. The Company, led by a team with operational experience and a strong track record in Africa, has a strategy of identifying high growth potential businesses where it can take an active role in their advancement.
Armadale holds the right to an 80% interest in the Mpokoto Gold Project in the Democratic Republic of Congo. Armadale are focused on proving up the resource potential of Mpokoto with a view to commencing commercial gold production in 2015.
Armadale also holds approximately a 40% interest in Mine Restoration Investments Ltd, a South African listed company, which aims to develop profitable operations within the South African mining industry through its coal briquetting operation in KwaZulu Natal and acid mine drainage technology in the Witwatersrand basins.
In addition, Armadale has a small portfolio of listed investments which are focused on gold production and exploration. The Directors continue to maintain an active acquisition strategy and will review investment opportunities that they believe have the potential to be accretive in terms of shareholder value.