Its primary focus is the Mahenge Graphite Project in Tanzania. Mahenge 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 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.