Aim-listed Armadale Capital on Wednesday provided an update regarding its plans to commercialise the Mahenge Liandu graphite project, ahead of anticipated completion of a definitive feasibility study in the fourth quarter.
The company confirmed that key meetings with current and prospective Chinese offtake and project finance partners are scheduled for early June. Armadale hoped that these will progress to binding agreements.
Meanwhile, the company continues to review of the graphite plant design, which has a capacity of 400 000 t/y, together with Chinese partners to ensure it is an optimal and efficient facility.
A graphite resource update for the Mahenge project will be published by the end of June.
Mining Weekly Online on Tuesday reported that Armadale had completed a scoping study on Mahenge that highlighted a potential net present value of $349-million and an internal rate of return of 122%.
The company plans on starting production in 2021.