Portfolio Investment

Armadale Capital

10/03/2014 09:00

Portfolio Investment

      Armadale Capital Plc

      Armadale Capital Plc (??Armadale?? or ??the Company??)

      Portfolio Investment

      Armadale Capital Plc, the AIM quoted investment company, is pleased to       announce that it has further diversified its investment portfolio       through the acquisition of an interest in ASX listed Redcliffe Resources       Limited (ASX:RCF) (??Redcliffe??). Redcliffe is focused on the exploration       and development of the highly prospective Mbesa Copper Project in       Tanzania (??Mbesa?? or ??the Project??), where initial grades of up to 14%       copper have been returned from rock chip sampling. In line with       Armadale??s investment objectives, the Company believes Redcliffe       represents an interesting investment opportunity, and as a result is the       cornerstone investor, investing A$60,000 (c32,000), amongst a group       that has invested a total of A$150,000.

      Mbesa is located within the Tunduru region in southern Tanzania, and has       demonstrated occurrences of high grade copper in a producing but as yet       underexplored copper region. Within the Project area there is current       artisanal mining, where the owners of the mines have advised Redcliffe       that approximately 622 tonnes of ore at an average copper grade of 22%       was produced in the last 12 months. Furthermore, analyses of rock chip       samples by Redcliffe from within the general area of the mines returned       grades of up to 14% copper, underpinning the area??s prospectivity. As       part of on-going project evaluation, Redcliffe intends to acquire a       parcel of ore from the currently operating Mbesa mine. This ore will       enable Redcliffe to undertake metallurgical test works at a much earlier       stage than would normally be possible in such a project, to provide a       better understanding of mineralogy and grade to assist in planning.

      Armadale has led a group of investors that has invested a total of       A$150,000 (c80,000) in Redcliffe at 1.5 cents per share together with a       free attaching option to each share, exercisable at 2c per share.       Armadale has invested A$60,000 (32,000) for a total of 4,000,000 shares       and 4,000,000 options. In addition Armadale has been granted a further 5       million options exercisable in tranches of 1 million options at a price       of 1.5c, 2c, 3c, 4c & 5c respectively.

      Justin Lewis, Director, commented ??We are delighted to have participated       in this placing which further diversifies Armadale??s investment       portfolio, providing the Company with exposure to a high grade copper       asset. This expands our investment proposition, which also includes our       majority interest in the Mpokoto Gold Project in the Democratic Republic       of Congo and our 40% interest in South African coal processing and       briquetting company Mine Restoration Investments, giving investors a       unique blend of early stage exploration upside and cash generating       projects across a spectrum of commodities. We are very encouraged by the       initial exploration work that Redcliffe has reported from the Mbesa       Copper Project, and we look forward to an exciting pipeline of news flow       from the Redcliffe management team.?

      **ENDS**

Enquiries:
Company
 Justin Lewis, Director 
 +61 439 162369 
 Charles Zorab 
 +44 207 233 1462 
Nomad and broker: finnCap Limited
 Stuart Andrews/Christopher Raggett 
 +44 207 220 0500 
Press relations: St Brides Media & Finance Ltd.
 Susie Geliher/Charlotte Heap 
 +44 207 236 1177 


      More information can be found on the website www.armadalecapitalplc.com

      Notes

      Armadale Capital Plc is focussed on investing in and developing a       portfolio of investments, targeting the natural resources and/or       infrastructure sectors. The Company, led by a team with operational       experience and a strong track record in Africa, has a strategy of       identifying high growth potential businesses where it can take an active       role in their advancement.

      Armadale holds the right to an 80% interest in the Mpokoto Gold Project       in the Democratic Republic of Congo. Armadale are focused on proving up       the resource potential of Mpokoto with a view to commencing commercial       gold production in 2015.

      Armadale also holds approximately a 40% interest in Mine Restoration       Investments Ltd, a South African listed company, which aims to develop       profitable operations within the South African mining industry through       its coal briquetting operation in KwaZulu Natal and acid mine drainage       technology in the Witwatersrand basins.

      In addition, Armadale has a small portfolio of listed investments which       are focused on copper/gold production and exploration. The Directors       continue to maintain an active acquisition strategy and will review       investment opportunities that they believe have the potential to be       accretive in terms of shareholder value.