Aim-listed Armadale Capital has raised £795 275 through the placing of 72.30-million shares at a price of 1.1p apiece to support the completion of the definitive feasibility study (DFS) for its Mahenge Liandu graphite project, in Tanzania.
“The strategic financing announced today provides the necessary capital to secure the completion of the company’s key DFS for its Mahenge Liandu graphite project and will bring Armadale to the point at which we will make the decision to mine,” Armadale director Nick Johansen said in a statement on Wednesday.
“We believe the DFS, to be published later this year, will highlight and confirm the compelling economics established in the scoping study released in March 2018. This scoping study demonstrated a project net present value of $349-million and a project internal rate of return of 122%,” he added.
The calculated project capital expenditure drawdown was $35-miliion, which he said demonstrated the potential for a low project development cost, against a payback estimate of 1.2 years.