https://www.miningweekly.com

Armadale appoints contract miner to help finance, develop DRC project

8th June 2015

  

Font size: - +

JOHANNESBURG (miningweekly.com) – Aim-listed miner Armadale has entered into a heads of terms agreement with contract miner Africa Mining Contracting Services (A-MCS) to fund, develop, build and operate the Mpokoto gold project, in the Democratic Republic of Congo (DRC).

Under the terms of the agreement, which was subject to the execution of a final, definitive agreement between the parties, A-MCS would introduce investors to provide up to $20-million in debt financing to fund the development of the 678 000 oz project, in the Katanga province, to production in 2016.

“The provision of [the] project finance is a crucial step in the project’s development and, with extensive local experience, we are delighted to have signed with A-MCS.  We will now work closely with our new partners to finalise the definitive feasibility study (DFS) and the definitive agreements to deliver a low-cost, low-capital expenditure mine capable of generating excellent returns for shareholders.

“With this funding and development agreement, an initial net present value of $55.3-million – based on a forecast gold price of $1 250/oz – and a further potential resource upgrade, Mpokoto continues to show its commercial value,” Armadale director Justin Lewis commented.

The mine’s scoping study identified that $8.25-million would be required for developing the processing plant, $3.75-million for associated infrastructure and $8.5-million for infrastructure. The final agreed amount of funding would be subject to the agreed results of the DFS.

The financing would be provided through loan notes secured over the project at an interest rate of 12.5%, repayable anytime up to 36 months after the provision of the loan.

It was envisaged that the providers of such loan would be granted a warrant over 5% of the issued share capital in Kisenge – a subsidiary of Armadale.

A-MCS also agreed to work with Armadale and its principal consultant Bara Consulting to complete the DFS, ensuring that the group benefits from A-MCS’s in-country expertise and that the costs, both capital and operational, were agreed between all parties.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Schauenburg SmartMine IoT
Schauenburg SmartMine IoT

SmartMine IoT has been developed with the mining industry in mind, to provides our customers with powerful business intelligence and data modelling...

VISIT SHOWROOM 
Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.112 0.147s - 90pq - 2rq
Subscribe Now