Armadale Capital Plc (‘Armadale’ or ‘the Company’)
Armadale Capital Plc, the AIM quoted investment company, is pleased to announce that it has further diversified its investment portfolio through the acquisition of an interest in ASX listed Redcliffe Resources Limited (ASX:RCF) (‘Redcliffe’). Redcliffe is focused on the exploration and development of the highly prospective Mbesa Copper Project in Tanzania (‘Mbesa’ or ‘the Project’), where initial grades of up to 14% copper have been returned from rock chip sampling. In line with Armadale’s investment objectives, the Company believes Redcliffe represents an interesting investment opportunity, and as a result is the cornerstone investor, investing A$60,000 (c£32,000), amongst a group that has invested a total of A$150,000.
Mbesa is located within the Tunduru region in southern Tanzania, and has demonstrated occurrences of high grade copper in a producing but as yet underexplored copper region. Within the Project area there is current artisanal mining, where the owners of the mines have advised Redcliffe that approximately 622 tonnes of ore at an average copper grade of 22% was produced in the last 12 months. Furthermore, analyses of rock chip samples by Redcliffe from within the general area of the mines returned grades of up to 14% copper, underpinning the area’s prospectivity. As part of on-going project evaluation, Redcliffe intends to acquire a parcel of ore from the currently operating Mbesa mine. This ore will enable Redcliffe to undertake metallurgical test works at a much earlier stage than would normally be possible in such a project, to provide a better understanding of mineralogy and grade to assist in planning.
Armadale has led a group of investors that has invested a total of A$150,000 (c£80,000) in Redcliffe at 1.5 cents per share together with a free attaching option to each share, exercisable at 2c per share. Armadale has invested A$60,000 (£32,000) for a total of 4,000,000 shares and 4,000,000 options. In addition Armadale has been granted a further 5 million options exercisable in tranches of 1 million options at a price of 1.5c, 2c, 3c, 4c & 5c respectively.
Justin Lewis, Director, commented “We are delighted to have participated in this placing which further diversifies Armadale’s investment portfolio, providing the Company with exposure to a high grade copper asset. This expands our investment proposition, which also includes our majority interest in the Mpokoto Gold Project in the Democratic Republic of Congo and our 40% interest in South African coal processing and briquetting company Mine Restoration Investments, giving investors a unique blend of early stage exploration upside and cash generating projects across a spectrum of commodities. We are very encouraged by the initial exploration work that Redcliffe has reported from the Mbesa Copper Project, and we look forward to an exciting pipeline of news flow from the Redcliffe management team.”
|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 copper/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.