Armadale Capital has entered into a heads of agreement to sell its interest in the Mpokoto gold project in the Democratic Republic of Congo to Weghsteen Capital Advice SA for US$562,500 and a 1.5% royalty on gold produced.
WCA is acting on behalf of Radismore, an investment vehicle incorporated under BVI law, which is fully funded and committed to starting gold production at Mpokoto within two years.
The HOA is subject to execution of a formal binding agreement, which is expected Q1 2018.
Director Nick Johansen said: ' We are pleased to have secured this strategic sales agreement and believe that Radismore and its associates have the necessary funds and skill set to advance Mpokoto into production and unlock the asset’s value potential.
'Crucially, we will retain an interest in Mpokoto through a royalty without the burden of development and production cost.
'This strategic interest in turn means that we can concentrate our resources on developing the Mahenge Liandu Graphite project in Tanzania, which offers near term development opportunity with multiple value accretive milestones expected this year.
'A drilling programme aimed at significantly increasing the size of the deposit is planned for Q2 2018, whilst the results of a scoping study are due Q1, and a feasibility study is expected to commence thereafter with the objective of reaching a decision to mine in the near term.
'We are very excited for the year ahead and look forward to updating shareholders on these exciting developments and the finalisation of the sale.'