The Company has exposure to gold through a 1.5% royalty on sales achieved from the Mpokoto Gold Project in the Democratic Republic of the Congo.
The Company also maintains a small portfolio of quoted investments, principally in gold production companies, where the directors believe there are opportunities for capital gain. The Company continues to keep its portfolio under review.
Mpokoto Gold Project
As announced on 11 January 2019, Armadale Capital has entered into final formal sale agreement with African Royalty Company Pty Limited (a related company to Arrow Mining Pty Ltd) for the sale of the Mpokoto Gold Project in the Democratic Republic of Congo.
The agreement crystallises the value of the Mpokoto Project with a company capable of obtaining the funding to bring the mine into production. The transaction allows Armadale to focus on advancing its primary value driver, the high-grade Mahenge Liandu Graphite Project in Tanzania, whilst ensuring the Company retains exposure to the development upside of the Mpokoto Project.
The project has a current total mineral resource of 678,000oz gold (‘Au’) from 14.58m tonnes @ 1.45g/t Au at a cut-off grade of 0.5g/t to produce approximately 25,000oz per annum over a nine-year mine life.