Democratic Republic of Congo – Armadale Capital, the AIM quoted investment company focused on natural resource projects in Africa, has raised £700 000 after placing 20 million new ordinary shares of 0.1 pence each at a price of 3.5 pence per share with institutional and other investors.

The proceeds of the placing will allow Armadale to continue the development of its Mpokoto gold project in the Katanga province of the Democratic Republic of Congo by commencing ground works in conjunction with drilling.

This includes the completion of the definitive feasibility study (DFS), which is targeted for completion in the third quarter of 2015.

Mpokoto has a current resource of 678 000 oz of gold grading at 1.45 g/t gold, and is on track to commence production in the first half of 2016, targeting approximately 25 000 ozpa of gold over a nine year life of mine.

“Having recently raised £400 000, we are delighted to have further bolstered our cash balance with this £700 000 placing. We are optimistic that the results will further enhance our already favourable project economics, which includes a net present valuation of $32.3 million based on a forecast gold price of $1 100/oz,” says Armadale director Justin Lewis.

“The completion of the DFS will represent another major development milestone and importantly form the basis of definitive agreements with Africa mining Contracting Services group, to fund, construct and operate the Mpokoto mine.  With funding secured and a defined route to production in place, which includes the recently finalised process route for gold recovery, I am delighted with the excellent progress we continue to make in advancing Mpokoto into production,” Lewis added.

Following the placing, which is expected to occur on 20 August 2015, Armadale Capital will have about 72.8 million ordinary shares in issue.

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