Environmental and Social Impact Assessment Submitted

LONDON--(BUSINESS WIRE)-- 

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

8 September 2020

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

Environmental and Social Impact Assessment Submitted

Armadale Capital plc (LON: ACP), the AIM quoted investment group focused on natural resource projects in Africa, is pleased to announce that it has submitted the Environmental and Social Impact Assessment (‘ESIA’) to the National Environment Management Council (‘NEMC’) of Tanzania for the Company’s natural flake graphite from its 100%-owned Mahenge Graphite Project (‘Mahenge Liandu’ or the ‘Project’) in south-east Tanzania.

Highlights

• Completed one of the final necessary components in the Mining Licence application process -the submission of the ESIA application to the NEMC
• NEMC have now confirmed they will be conducting the field visit during week commencing 14^th of September 2020. This is one of the final steps before recommendation for the granting of the environmental permit (EISA approval) which will allow the granting of the mining licence.

Armadale Chairman, Nick Johansen, commented: “We are delighted to announce another crucial step in the development of the Mahenge Liandu Graphite Project with the completion and submission of the Environmental and Social Impact Assessment, which is one of the final necessary components in the Mining Licence application process. I would like to thank all those involved for their efforts and we look forward to working with the NEMC as we advance toward the completion of this process.

“Alongside the progression toward receipt of the Mining Licence for the Project, which will be an important de-risking milestone for the Company, we maintain focus on finalising ongoing financing discussions so that we can commence construction and realise the value of Mahenge Liandu for the benefit of all stakeholders. Accordingly, we continue to positively engage in development funding options, including debt package and project level development funding, and our offtake workstreams are also progressing preparations to commence the Front End Engineering Design study (‘FEED’).”

Full Details

Armadale remains focused on fast-tracking its Mahenge Liandu Graphite Project in south-east Tanzania to production, which has the potential to create pre-tax cashflow of US$985m over an initial 15 year mine-life. In line with this, the Company submitted the Mining Licence application for the Project to the Department of Energy and Minerals in Tanzania on 30 June 2020 and has now submitted one of the final key components of this application process, the ESIA, to the NEMC. Once approved by the NEMC, the ESIA will be submitted to the Department of Energy and Minerals to complete the application process. Other components of the Mining Licence process include a Local Content Plan, a Human Resources Plan, a Resettlement Framework and Mine Plans.

The ESIA application for the Project was submitted by Tanzanian based, registered, and certified environmental consultants to the NEMC in Tanzania. Armadale’s geology staff and its environmental consultants visited the Project area in late August to prepare for a field visit by NEMC, which has been confirmed will commence on 14 September 2020. This is expected to be the final step before the granting of the Mining Licence.

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

**ENDS**

Enquiries:
Armadale Capital Plc Nick Johansen, Non-Executive Director Tim Jones, Company Secretary	[phone]
Nomad and broker: finnCap Ltd Christopher Raggett / Teddy Whiley	[phone]
Joint Broker: SI Capital Ltd Nick Emerson	[phone]
Press Relations: St Brides Partners Ltd Charlotte Page / Beth Melluish	[phone]

Notes

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 Indicated and inferred mineral resource estimate of 59.48Mt @ 9.8% TGC, making it 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.

More information can be found on the website www.armadalecapitalplc.com.