REG - Armadale Capital PLC - Management Team Enhanced With Key Appointment

Armadale CapitalAnnouncement

15/12/2021 09:30

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RNS Number : 7397V  Armadale Capital PLC  15 December 2021

Armadale Capital Plc / Index: AIM / Epic: ACP / Sector: Investment Company

 

 

15 December 2021

 

Armadale Capital Plc

('Armadale' the 'Company' or the 'Group')

Management team enhanced with key appointment

Armadale, the AIM quoted investment company focused on natural resource
projects in Africa, is delighted to announce that Mr Greg Entwistle has agreed
to join as Project Director (non-board) to spear-head developing the Mahenge
Liandu Project in Tanzania. Mr Entwistle brings a wealth of experience to the
group which should materially aid Armadale's efforts to accelerate
commissioning mining operations at the Mahenge Liandu Project.

 

Mr Greg Entwistle: Project Director

 

Mr Entwistle has an excellent pedigree and has worked across all aspects of
the resources value chain - from feasibility through to production - in
emerging and developed mining jurisdictions. During his career Mr Entwistle
has worked for blue-chip Newcrest Mining as Engineering and Production Manager
for the Telfer Operation in Western Australia and Halmahera Operation in
Indonesia. Senior roles include Director of Operations for Agincourt Resources
in Indonesia as well as Chief Operating Officer for the Kapulo & Dikulushi
Copper Projects in the Democratic Republic of Congo.

 

Over the past five years, Mr Entwistle has focused on specialising in the
emerging graphite sector in East Africa, consulting to several groups that are
advancing projects towards production.

 

From Armadale's perspective, Mr Entwistle's appointment is timely as it
coincides with a plethora of positive developments including:  1) the Mahenge
Liandu Project being granted a mining licence in September 2021; and, 2)
improving fundamentals with strong demand for downstream battery products
boosting graphite prices materially.

 

 

Nick Johansen, Director of Armadale, said: "Appointing Greg Entwistle to lead
developing the Mahenge Liandu Project is a significant breakthrough, as he
brings considerable skills and experience to expedite progress towards
commissioning production. Consequently, our vision to become a significant
low-cost graphite producer has been considerably reinforced. The Board looks
forward to updating the market as fresh developments materialise."

 

 

 

 

 

 

MAHENGE LIANDU PROJECT UPDATE

 

Armadale is now advancing its FEED study which includes geotechnical studies
on the plant and tailings dam locations, with final design of the tailings dam
and detailed design to be completed. In addition, a ground water study has
been initiated to facilitate the development of production bores.

Armadale has continued to engage with international and local contractors to
develop strategies in regard to the construction and implementation of the
project. Final alignment of the site access route is being developed which
will allow final design work to be completed.

 

·    Mahenge Liandu Graphite Project established as a large, long life
graphite deposit capable of producing high quality graphite concentrate for
the rapidly emerging EV market through optimised Definitive Feasibility Study
('DFS')

o  High-grade JORC compliant indicated and inferred mineral resource estimate
of 59.48Mt @ 9.8% TGC with outstanding purity of up to of 99.99% TGC
achievable using conventional treatment

o  US$985m pre-tax cashflow to be generated from initial 15 year mine life
utilising just 25% of the resource, which remains open in multiple directions
offering significant further upside

o  Estimated pre-tax NPV of US$430m and IRR of 91%

o  Average annual production of large flake high-purity graphite of 109ktpa

 

·    Low cost, fast-tracked production to be delivered through staged
ramp-up

o  60,000tpa graphite concentrate to be produced for the first three years
(Stage 1) before increasing to life of mine average of 109,000tpa (Stage 2)

o  Low capital cost estimate - Stage 1 is US$39.7m, including contingency of
U$S4.1m or 15% of total direct capital cost with 1.6 year (after tax) payback
period from first production based on an average sales price of US$1,112/t

o  Stage 2 expansion to be funded from cashflow

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulations (EU No.
596/2014) which is part of UK law by virtue of the European Union (Withdrawal)
Act 2018. Upon the publication of this announcement, this inside information
is now considered to be in the public domain.

 

 

 

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