logo-loader
viewArmadale Capital PLC

Armadale Capital to acquire graphite project in Tanzania

Armadale Capital PLC has agreed to acquire the Mahenge Liandu Graphite Project

Electricals.jpg
Graphite is used in a number of electronic components

Armadale Capital PLC (LON:ACP) has moved into the highly prospective graphite market with the acquisition of a graphite project in south-east Tanzania.

The AIM-listed firm has agreed to acquire the Mahenge Liandu Graphite Project in an all-share deal from Aussie firm Graphite Advancement Tanzania Pty Ltd (GAT).

Armadale will acquire GAT for 80mln shares, which will be issued upon completion.

The project is in an area of “proven coarse flake, high grade graphite resources”, the company said, with two Australian miners, Kibaran Resources Ltd and Black Rock Mining Limited, developing graphite projects immediately adjacent to the site.

Peter Marks, Chairman of Armadale, said: “This transaction creates a significant opportunity for Armadale in an industry with exciting demand fundamentals.

“Mahenge Liandu is in an area of known high quality graphite indicating that this Project area may benefit from similar high mineral values.”

The company has already drilled and sampled three holes, and the results have “further reinforced” its confidence that the Mahenge Liandu Project is an “ideal investment target”.

The graphite market is expected to double over the next eight years, according to the company, led by an increase in demand electronic devices.

Quick facts: Armadale Capital PLC

Price: 3.25 GBX

AIM:ACP
Market: AIM
Market Cap: £13.1 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Fertoz continues to plan for the future despite extremely...

Fertoz Ltd (ASX: FTZ) Executive Chairman Patrick Avery joined Steve Darling from Proactive Vancouver on Skype to discuss what has been a very tough weather year for the company. Even with that, Avery says the company has been very busy this year signing a number of distribution...

1 day, 15 hours ago

2 min read