Placing to Raise £963,500

Placing to Raise £963,500

Armadale Capital Plc

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

9 April 2018

Armadale Capital Plc (‘Armadale’ or ‘the Company’)

Placing to Raise £963,500

Armadale, the AIM quoted investment company focused on natural resource projects in Africa, announces that it has raised £963,500 through the placing of 58,393,941 new ordinary shares of 0.1 pence each (‘Ordinary Shares’) in the capital of the Company (the ‘Placing Shares’) at a price of 1.65 pence per Ordinary Share with new and existing investors in the UK and Australia (the ‘Placing’). The funds raised will be used to commence work on a feasibility study at the Mahenge Liandu Graphite Project in Tanzania, ahead of an intended decision to mine in early 2019, together with funding working capital requirements.

Armadale also announces the immediate appointment of SVS Securities Limited (‘SVS’) as joint broker to the Company following SVS’s significant contribution to today’s Placing.

Nick Johansen, Director of Armadale said: “Our recently published Scoping Study at Mahenge Liandu established our project as a high value, low capex development asset, boasting an NPV of US$349 million, IRR of 122% and 1.2-year payback period, with potential to be fast-tracked into production in a short timeframe. Coupled with the highly encouraging test results received from bulk sample test work, which produced graphite concentrates with exceptional purity of up to 99.1% total graphitic carbon, the development value of Mahenge Liandu is evident, and it is with this in mind that I am delighted to report that our feasibility study will be able to commence in earnest following today’s raising.

“I would like to thank the new and existing investors who participated in this placing and I look forward to issuing further updates regarding our development initiatives at Mahenge Liandu over the coming months as we work towards a decision to mine in early 2019. Importantly, it is worth noting that certain members of the board and senior management have participated in this placing, which both highlights our enthusiasm for this project and underlines our confidence in its value accretion potential moving forward.”

Details of the Placing:

The Placing is subject, inter alia, to admission of the Placing Shares to trading on AIM (‘Admission’), which is expected to occur at 8.00 a.m. on 13 April 2018. Application has been made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM. The Placing Shares will, when issued, rank pari passu in all respects with the Company's existing Ordinary Shares.

Following Admission, the Company therefore will have 303,033,975 Ordinary Shares in issue. The Company has no shares in treasury, therefore the figure of 303,033,975 should be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change of their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

Director and PDMR Dealing and Related Party Transactions

Nicholas Johansen (Director of the Company), Matt Bull (Technical Manager of the Company and a “person discharging managerial responsibility”) and Kabunga Holdings Pty Ltd (a “substantial shareholder” of the Company as defined in the AIM Rules) are participating in the Placing as follows:

Name	Â	Current number of Ordinary Shares held	Â	% of existing number of Ordinary Shares	Â	Number of Placing Shares subscribed for	Â	Number of Ordinary Shares held post-Admission	Â	% of issued share capital as enlarged by the Placing
Nicholas Johansen		800,000		0.3%		1,212,122		2,012,122		0.7%
Matt Bull		13,683,852		6.5%		10,000,000		23,683,852		8.6%
Kabunga Holdings Pty Ltd		29,243,749		12.0%		5,212,122		34,455,871		11.4%

Nicholas Johansen and Kabunga Holdings Pty are related parties of the Company (as defined in the AIM Rules for Companies). The Independent Director, being Steve Mahede, considers, having consulted with the Company’s nominated adviser, finnCap, that the terms of Nicholas Johansen’s and Kabunga Holdings Pty Ltd’s participation in the Placing are fair and reasonable insofar as the Company’s shareholders are concerned.

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

**ENDS**

Enquiries:	Â
Armadale Capital Plc Tim Jones, Company Secretary		[phone]
Nomad and broker: finnCap Ltd Christopher Raggett / Simon Hicks		[phone]
Joint Broker: SVS Securities Tom Curran / Ben Tadd		[phone]
Press Relations: St Brides Partners Ltd Susie Geliher / Charlotte Page		[phone]

Notes

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

The Company owns the Mahenge Liandu graphite project in south-east Tanzania, which is now its main focus. The Project is located in a highly prospective region with a high-grade JORC compliant Indicated and inferred mineral resource estimate of 51.1Mt @ 9.3% TGC, making it one of the largest high-grade resources in Tanzania, and work to date has demonstrated Mahenge Liandu’s potential as a commercially viable deposit with significant tonnage, high-grade coarse flake and near surface mineralisation (implying a low strip ratio) contained within one contiguous ore body.

Other assets Armadale has an interest in, include the Mpokoto Gold project in the Democratic Republic of Congo and a portfolio of quoted investments.

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

Notification and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them

1.	Â	Details of the person discharging managerial responsibilities / person closely associated
a)		Name	Â	Nicholas Johansen
2.		Reason for the Notification
a)		Position/status		Non-Executive Director
b)		Initial notification/Amendment		Initial notification
3.		Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor
a)		Name		Armadale Capital plc
b)		LEI		213800495EK876JETD10
4.		Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted
a)		Description of the Financial instrument, type of instrument		Ordinary shares of 0.1 pence each (“Ordinary Shares”)
		Identification code		ACP GB00BYMSY631
b)		Nature of the transaction		Subscription for Ordinary Shares
c)		Price(s) and volume(s)		Volume – 1,212,122 ordinary shares Price – 1.65 pence
d)		Aggregated information: Aggregated volume Price		See 4c) above
e)		Date of the transaction		8 April 2018
f)		Place of the transaction		London Stock Exchange, AIM Market (XLON)

	Â
1.		Details of the person discharging managerial responsibilities / person closely associated
a)		Name	Â	Matt Bull
2.		Reason for the Notification
a)		Position/status		Technical Director
b)		Initial notification/Amendment		Initial notification
3.		Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor
a)		Name		Armadale Capital plc
b)		LEI		213800495EK876JETD10
4.		Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted
a)		Description of the Financial instrument, type of instrument		Ordinary shares of 0.1 pence each (“Ordinary Shares”)
		Identification code		ACP GB00BYMSY631
b)		Nature of the transaction		Subscription for Ordinary Shares
c)		Price(s) and volume(s)		Volume – 10,000,000 ordinary shares Price – 1.65 pence
d)		Aggregated information: Aggregated volume Price		See 4c) above
e)		Date of the transaction		8 April 2018
f)		Place of the transaction		London Stock Exchange, AIM Market (XLON)

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