Raises £825,000 to Advance High Grade Liandu G...

Raises £825,000 to Advance High Grade Liandu Graphite Project, Tanzania

Armadale Capital Plc

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

23 June 2016

Armadale Capital Plc

(‘Armadale’ or ‘the Company’)

Raises £825,000 to Advance High Grade Liandu Graphite Project, Tanzania

Armadale, the AIM quoted investment company focused on natural resources projects, is pleased to announce that it has raised £825,000 through the placing of 41,250,000 new ordinary shares of 0.1 pence each in the capital of the Company (the ‘Placing Shares’) at a price of 2 pence per share with new and existing investors (the ‘Placing’).

The funds raised will be used to support the development of the Mahenge Liandu Graphite Project in south east Tanzania (‘Liandu Project’ or ‘the Project’), which the Company is in the process of acquiring (for more information relating to the proposed acquisition see the Company’s announcement of 2 June 2016). High grade graphite mineralisation of up to 33.8% Total Graphite Content (‘TGC’) has been demonstrated through the analysis of rock chip samples at the Project, which is located in a highly prospective region close to other commercial graphite projects, including Kibaran Resources’ Epanko Project, which has Proven and Probable Ore Reserves of 10.9Mt at 8.6% TGC and Black Rock Mining’s Mahenge Project, which has a global resource of 131Mt at 7.9% TGC.

Peter Marks, Chairman of Armadale said, “Having identified high grade graphite mineralisation at the Liandu Project in Tanzania, we are focussed on implementing a fast paced development programme and are targeting the delivery of a Maiden Resource estimation later this year. We are delighted to have raised £825,000 to support us in these efforts and believe the Project’s development represents a significant growth opportunity for Armadale. Global demand for commercial graphite, which is an essential component of the modern lithium-ion battery, is growing at a rapid rate and expected to double within the next eight years. This has positive implications for the pricing outlook, particularly for a project such as Liandu, which is significantly de-risked thanks its highly prospective location contiguous to well established graphite projects.”

“With a growing asset portfolio that now provides our investors with exposure to both the graphite and gold market we look forward to advancing the Liandu Project alongside our Mpokoto Project.”

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 8am on Friday 24 June 2016. 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 will have 140,801,967 Ordinary Shares in issue. The Company has no shares in treasury, therefore the figure of 140,801,967 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.

**ENDS**

Enquiries:	Â
Armadale Capital Plc Charles Zorab, Company Secretary		[phone]
Nomad and broker: finnCap Ltd Christopher Raggett / Simon Hicks		[phone]
Joint Broker: Beaufort Securities Limited Jon Belliss		[phone]
Press Relations: St Brides Partners Ltd Charlotte Heap / Susie Geliher		[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.

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

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