JOHANNESBURG (miningweekly.com) – Aim-listed Armadale Capital is preparing to launch an initial exploration programme after successfully completing its buyout of the Mahenge Liandu high-grade graphite project, in south-east Tanzania.
The first phase of work had started, comprising a ground electromagnetic survey, along with ongoing geological mapping, to generate targets for reverse circulation drilling.
Drilling was expected to start in the next few weeks at the project which was expected to provide Armadale “ground-floor” access to the high-demand graphite market, while limiting exploration risk, owing to the project’s location in a premier graphite-bearing region.
“Graphite has been identified and prioritised by the Armadale team as a high-demand commodity with significant strategic value as an essential component of the modern lithium-ion battery,” Armadale chairperson Peter Marks said.
The acquisition by the investment company, which aimed to declare the maiden resource of the project during 2016, complemented a strategy to build a portfolio of highly valuable Africa-based resource projects with near-term revenue generation potential.
“With exposure to a commodity with exciting growth prospects in graphite, coupled with the traditional safe-haven and store of value in gold, Armadale is strategically positioned for growth,” he added.
The investment company issued 57.5-million ordinary shares at 0.1p apiece and £450 000 of unsecured convertible loan notes to acquire 100% share capital of Graphite Advancement, which owned the Liandu project.
Edited by: Creamer Media Reporter
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