Armdale Capital Plc, the AIM quoted investment company focused on natural resource projects in Africa, is selling shares to raise cash for the continued development of the Mpokoto Gold Project in the Democratic Republic of Congo.
The company is looking to institutional and other investors to snap up the offering after announcing it has placed shares at a price of 0.14pence in order to raise £525,000.
The Mpokoto Gold Project in the Katanga Province has shown a Total Mineral Resource of 510,000oz gold.
Armadale will soon be publishing the results of a Scoping Study for Mpokoto together with related metallurgical and environmental reports, due before March 31, in conjunction with submission of the Mining Licence application.
The Scoping Study will define the next steps to be taken including a further drilling programme and additional metallurgical studies.
Peter Marks, Chairman of Armadale, said: “Armadale remains focused on the rapid development of the highly prospective Mpokoto Gold Project which has demonstrated its potential to become a low cost production asset.
“This funding will be used to continue the development of Mpokoto as well as look at other potential investment opportunities.
“With a strengthened cash position we look forward to commencing a drill programme to further prove up the current resource and to receiving the results of the Scoping Study this month, which will set out a clear pathway for the future development of Mpokoto.”
The Placing is subject, inter alia, to admission of the Placing Shares to trading on AIM, which is expected to occur at 8am on April 2, 2014.