Progress Update: Mahenge Liandu Graphite Project Feasibility Study


Armadale Capital Plc / Index: AIM / Epic: ACP / Sector: Investment Company

30 July 2018

Armadale Capital Plc (‘Armadale’ or ‘the Company’)

Progress Update: Mahenge Liandu Graphite Project Feasibility Study

Armadale, the AIM quoted investment company focused on natural resource projects in Africa, is pleased to announce a positive update on the feasibility study underway at its Mahenge Liandu Graphite Project in Tanzania (‘Mahenge Liandu’ or the ‘Project’) ahead of an anticipated decision to mine in early 2019.


  • Multiple work streams underway to fast track completion of the feasibility study and define Maiden Reserves ahead of an anticipated decision to mine in early 2019
  • Diamond Drilling underway, the purpose of which is to obtain representative samples for test work and product marketing. A total of 450m of drilling and 7 drill holes will be completed.
  • Reverse Circulation (‘RC’) drill rig mobilised on-site to focus on upgrading the current JORC Resource of 51.1Mt at 9.3% Total Graphitic Carbon (‘TGC’) to Probable and Proven Reserves
  • Airborne topographic survey now underway covering the area of the proposed mining permit of 10km2
  • Environmental and Social baseline surveys now underway with an environmental impact assessment (EIA) and relocation action plan (RAP) expected to be submitted in 8-10 weeks
  • Finalised security arrangements with consortium of high net worth individuals (the “Consortium”) pursuant to financing facility (announced on 20 October 2017) to provide up to £400,000 to support the continued development of the Mahenge Liandu, with Armadale entering into security agreements and a priority deed with each member of the Consortium over the assets of Armadale.

Nick Johansen, Director of Armadale said, “The various critical work streams at Mahenge Liandu are all progressing extremely well, and we remain on course to make a decision to mine in early 2019 – meaning that with a fair wind, we should be producing graphite by H1 2020.

“We have already demonstrated that Mahenge Liandu is one of the most attractive graphite development assets globally; with lowest quartile opex and capex costs, an IRR of 122% and a 1.2 year payback. The Project NPV of US$349m is also a stark contrast to our current market cap of under £5 million. Combining these robust economics with ever-improving demand fundamentals for graphite, Armadale is ideally positioned to rapidly capitalise on this market opportunity and become a significant new high quality graphite producer within the next 18-24.

“I look forward to providing further updates regarding our progress in the coming weeks.”

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.


For further information, please visit the Company’s website, follow Armadale on Twitter @ArmadaleCapital or contact:

Armadale Capital Plc

Tim Jones, Company Secretary

+44 20 7236 1177
Nomad and broker: finnCap Ltd

Christopher Raggett / Simon Hicks

+44 20 7220 0500
Joint Broker: SVS Securities

Tom Curran / Ben Tadd

+44 20 3700 0093
Press Relations: St Brides Partners Ltd

Susie Geliher / Charlotte Page

+44 20 7236 1177


Armadale Capital Plc is focused on investing in and developing a portfolio of investments, targeting the natural resources and/or infrastructure sectors in Africa. The Company, led by a team with operational experience and a strong track record in Africa, has a strategy of identifying high growth businesses where it can take an active role in their advancement.

The Company owns the Mahenge Liandu graphite project in south-east Tanzania, which is now its main focus. The Project is located in a highly prospective region with a high-grade JORC compliant inferred mineral resource estimate of 51.1Mt @ 9.3% TGC. Marking the project one of the largest high-grade resources in Tanzania, and work to date has demonstrated Mahenge Liandu’s potential as a commercially viable deposit with significant tonnage, high-grade coarse flake and near surface mineralisation (implying a low strip ratio) contained within one contiguous ore body.

Other assets Armadale has an interest in include the Mpokoto Gold project in the Democratic Republic of Congo and a portfolio of quoted investments.

Short Name: Armadale Capital Plc
Category Code: MSCU
Sequence Number: 652326
Time of Receipt (offset from UTC): 20180727T104700+0100


Armadale Capital Plc


Armadale Capital Plc