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Armadale Capital offloads Cono gold project to Radismore
African-focussed natural resource investor Armadale Capital has agreed to sell its interest in the Mpokoto gold project in the Democratic Republic of Congo for a total of $0.56m and a 1.5% royalty on all gold produced.
The was agreement, which is expected to be finalised before the end of March, is between Armadale and Weghsteen Capital Advice, which is acting on behalf of Radismore, a fully funded group committed to starting gold production at Mpokoto by 2020.
The total cash consideration will be paid in three tranches - $75,000 on signing the purchase contract, $187,500 within twelve months of signing, and the final $300,000 after production had begun.
Nick Johansen, director of Armadale 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," he added.
As of 1040 GMT, shares were flat on 2.25p.