Strategy

Armadale Capital is an investment company, which provides investors with exposure to high quality resource projects in Africa.

 
 

Armadale Capital is an investment company which provides investors with exposure to high quality resources projects in Africa.

Its primary focus is the Mahenge Liandu Graphite Project in Tanzania. Mahenge Liandu is a high grade coarse flake graphite project which the Board believes has the potential to become a strategically valuable mining asset.

The Board has identified graphite as a commodity with significant commercial value in light of a major paradigm shift occurring in the spherical graphite market. Currently nearly all natural spherical graphite is produced in China, where production has expanded in recent years. Increasing demand has seen prices of uncoated spherical graphite increase during 2016. Whilst Chinese production of spherical graphite is increasing, it is anticipated that new sources of production will be needed to service emerging customers such as Tesla and other lithium-ion battery producers. Armadale Capital, through the acquisition of the Mahenge Liandu Project, is seeking benefit from this macro dynamic, and the anticipated growth in demand for natural spherical graphite, by becoming a supplier of spherical graphite to the lithium-ion battery sector.

The Company has a secondary interest in the Mpokoto Gold Project in the Democratic Republic of Congo. Currently holding 75% of the project through a joint venture, its partner, Kisenge Mining, has an option to earn in to up to 85% of the project committing operational and financing responsibility to advance the project. For more information on the terms of the agreement with Kisenge Mining, click here. The Board believes that this agreement provides Armadale Capital with the potential benefit of owning a material interest in a producing gold mine with limited downside risk.

The Board also has an active appraisal process to assess additional potentially value accretive opportunities which meet the Company’s investment criteria.