Armadale Capital secures MOU for additional offtaker

2019-10-25

Oct. 25, 2019 - Armadale Capital plc (LON:ACP) the AIM quoted investment company focused on natural resource projects in Africa, is pleased to announce it has signed a Memorandum of Understanding (“MOU”) for a proposed offtake agreement with Datong Resources (“Datong”), China, for high quality graphite products produced at the Company’s Mahenge Liandu Graphite Project (“Mahenge Liandu” or the “Project”) in Tanzania.

Nick Johansen, Director of Armadale said: “Today’s offtake MOU marks a highly significant point in the transition of our Company from explorer to emerging producer and brings our offtake MOU portfolio to a point which exceeds the initial planned production from Mahenge Liandu.

“The ability to secure offtake MOUs of this magnitude demonstrates the robust nature of Mahenge Liandu and completes an important step as we proactively progress its development. Further updates to the market will be provided as each key step is completed, including as we move to finalisation of the project DFS.”

Details of the MOU with Datong Resources

Armadale has signed an MOU with Datong for the proposed offtake of 25,000 tpa of graphite concentrate produced at Mahenge Liandu for an initial five years. Datong is a subsidiary of the large enterprise group, Datong Group, based in Tianjin, China, which is focused on five sectors: the medical and health industry, health culture and tourism industry, mineral resources industry, clean energy industry and the innovative investment industry.

The MOU with Datong follows the MOU with CoolRU announced on 26 September 2019 and the MOU with Matrass Group announced on 19 February 2019. It brings the total offtake under an MOU to 60,000 tpa, representing 122% of the 49,000 tpa average annual production target outlined in the Project’s Scoping Study announced on 27 March 2018.