HomeBattery metalsArmadale in talks with funding parties for Mahenge Liandu

Armadale in talks with funding parties for Mahenge Liandu

AIM-listed Armadale Capital is under NDA with two separate parties with respect to project finance initiatives ahead of construction for Phase 1 of its 80 000 tpa nameplate capacity Mahenge Liandu graphite project in Tanzania.

These discussions follow the release of the results of its updated feasibility study delivered on 5 June 2020. The discussions are aimed at advancing project level funding with a view to bringing in an investment partner to progress through to mine construction at Mahenge Liandu.
As part of specific workstreams running concurrent to the recently delivered definitive feasibility study, and in increasing intensity since its completion, Armadale and its technical and financial advisors have been engaging with a number of potential strategic investors or possible joint venture partners.

READ MORE: Improved mine plan could double Armadale Capital’s graphite output

The interest from parties thus far ranges from potential small to medium size project development funding at an ‘investor’ level from reputable private equity mining specialists, through to possible engineering, procurement and construction management (EPCM) partnerships with internationally recognised construction management and contracting groups.

Due diligence from certain parties is progressing well and the company is in the process of helping all parties with detailed evaluations of the technical and financial aspects of Mahenge Liandu with a view to progressing to a potential partnership to progress to mine development and production.

In addition, the company is also advancing separate discussions with a number of Asian parties and hopes to provide further announcements with respect to further progress on development funding in the near-term.

“Following the delivery of the updated DFS, which underscored the exceptional potential of the Mahenge Liandu graphite project, we have continued working to our stated plan of pursuing multiple workstreams to fast-track development. Indeed, it is a testament to the highly compelling project economics that potential development funding interest is so strong at this early stage,” Says Armadale Capital chairman Nick Johansen.

“It is also encouraging to note the level of funding interest in other graphite development projects in the Mahenge area which also share many of the attractive characteristics of our project. For Armadale, finalising an agreement with a potential strategic investor or joint venture partner will represent an extremely important milestone for Armadale and we are fully committed to advancing these discussions whilst also continuing to progress workstreams in relation to detailed design engineering, and the finalisation of the company’s application for a full mining licence,” says Johansen.

He notes that Armadale has delivered a number of key value accretive milestones in recent months and the company looks forward to maintaining this momentum in the near term in order to continue to build value for its shareholders.