Published: June 3, 2016 |

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Armadale Capital remains in talks over a finance package to build its Mpokoto gold mine in the DRC.

African Mining Contracting Services Group (A-MCS) offered to put up US$20mln to build the mine last June but has yet to conclude its due diligence.

In a statement today, Armadale said discussions with A-MCS were still ongoing.

“They are continuing with their review of the DFS [definitive feasibility study] and our short term aim remains to finalize project finance for at least US$20 million. Initial production is dependent on the receipt of this financing and accordingly this is no longer expected in H1 2016.”

At a gold price of US$1,250 per oz, the DFS indicated revenue of US$138.6mln from Phase One of the project, with capital costs of US$25mln and cash operating costs of US$792 per oz.

The company added exploration at Mpokoto will continue through 2,000 meters of auger drilling and 2,500 meters of diamond drilling in approximately 150 holes.

Losses for the year to December were £992,000 (£1.08mln) which included a £316,000 write-down of its interest in briquette business MRI.

Source: (May 20, 2016) Proactive Investors

About Armadale Capital
Armadale Capital Plc is an AIM listed company focused on investing in and developing a portfolio of projects, targeting the natural resources sectors. The Company has a strategy of identifying high growth potential businesses where it can take an active role in their advancement.  The Company currently holds an 80 percent stake in the Mpokoto Gold project in the Democratic Republic of the Congo, which has a 380,000 oz of JORC defined gold resource.  It also holds a ~40 percent 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 and acid mine drainage technology.

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