JOHANNESBURG (miningweekly.com) – Aim-listed Armadale Capital has entered into a heads of agreement (HoA) with Weghsteen Capital Advice (WCA) for the sale of Armadale’s interest in the Mpokoto gold project, in the Democratic Republic of Congo, to Radismore, for $562 500 and a 1.5% royalty on gold produced.
WCA is acting on behalf of Radismore, which is fully funded and committed to starting gold production at Mpokoto within two years.
The HoA is subject to execution of a formal binding agreement, which is expected to be concluded in the first quarter of this year.
The purchase price will be payable in three cash tranches, with $75 000 payable on signing the purchase contract, $187 500 within 12 months of signing and $300 000 on start of production.
The sale of the noncore stake in Mpokoto will enable Armadale to focus on fast-tracking its Mahenge Liandu graphite project, in Tanzania.
“We are pleased to have secured this strategic sales agreement and believe that Radismore and its associates have the necessary funds and skill set to advance Mpokoto into production and unlock the asset’s value potential,” director Nick Johansen said in a statement.
He added that a drilling programme aimed at significantly increasing the size of the deposit is planned for the second quarter of this year, while the results of a scoping study are due in the first quarter. Work on a feasibility study is expected to begin thereafter, with the objective of reaching a decision to mine in the near term.