Aim-listed Armadale Capital has entered into a final formal agreement with African Royalty Company, which intends to acquire the Mpokoto gold project in the Democratic Republic of Congo (DRC).
The agreement crystallises the value of the project, with a company capable of obtaining the funding to bring the mine into production.
In turn, the transaction allows Armadale to focus on advancing its primary value driver – the high-grade Mahenge Liandu graphite project, in Tanzania.
Armadale retains exposure to the development upside of the Mpokoto project. Arrow Mining, which is affiliated with African Royalty, will take over the operation of the project and will pay Armadale a 1.5% royalty on gold sales achieved once the mine is in production.
The Mpokoto project’s feasibility study found the project capable of mining 720 000 t/y over four-and-a-half years, producing about 24 900 oz/y of gold.