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Armadale to raise £400 000 for DRC project

14th July 2015

By: Creamer Media Reporter

  

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JOHANNESBURG (miningweekly.com) – Aim-quoted Armadale Capital has moved to raise £400 000 to expand the resource of its Mpokoto gold project, in the Katanga province of the Democratic Republic of the Congo.

The natural resource-focused investment company on Tuesday announced the conditional placing of ten-million new ordinary shares of 0.1p each at a price of 4p a share.

The proceeds would be used to start a 2 500 m drilling programme later this month with the aim of adding another 120 000 oz to 150 000 oz of gold at a grade of 1.25 g/t to 1.5 g/t to the project’s current resource of 678 000 oz at 1.45 g/t.

The funds would also help advance initial work on the ground at Mpokoto, which was on track to start production in the first half of 2016, as the definitive feasibility study was completed.

The mine was expected to produce 25 000 oz/y of gold over a nine-year life-of-mine.

Armadale was also aiming to finalise its agreement with Africa Mining Contracting Services group to fund, develop, build and operate Mpokoto.

Edited by Creamer Media Reporter

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