Armadale, the AIM-quoted investment company focused on natural resource projects in Africa, has entered into an agreement with Bergen Global Opportunity Fund to secure flexible funding of up to US$2.73 million to support the development of its Mpokoto Gold Project, located in the Katanga Province of the Democratic Republic of Congo.

Under the terms of the agreement Armadale will issue to Bergen a zero coupon convertible security with a nominal value of US$480,000 and up to a further US$2.25 million in convertible securities.

The flexible funding option for the company by way of up to US$2.73 million in four staged convertible securities allows Armadale to further develop the Mpokoto Gold Project, where low capex, low opex gold production is targeted for H2 2015, and support working capital.

An initial convertible security of US$480 000 with conversion prices tied to future prices of the company’s shares and with the staged funding at the company’s option, potentially minimises dilution to existing shareholders.

Armadale has the right to terminate the facility at any time – the facility agreement also contains contractual limitations on Bergen’s ability to dispose of shares following any conversion, as well as a prohibition on short selling.

Peter Marks, Chairman of Armadale said “We are pleased to welcome another institutional investor to our register.  Securing this additional funding comes at an important time in the development of the Mpokoto Gold Project.

“We recently completed the acquisition of Kisenge Ltd, giving Armadale direct ownership of 80% of the Project; in the last few days we announced the third significant upgrade in the JORC resource at Mpokoto; and we will shortly announce the results of an updated and expanded scoping study, which we believe will demonstrate further enhanced economics for the Project.  We now remain focussed on continuing this rapid development schedule in order to advance the Project into production.

“This agreement will provide funding for the next stages of Mpokoto, including the finalisation of the Feasibility Study alongside some potential further exploration drilling to further expand the resource base.  At the same time the flexible structure ensures that any dilution to shareholders is potentially minimised.”

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