(Ecofin Agency) - Armadale Capital Plc, an investment company with assets in the mining sector and listed in London, is on the right path to start production on its Mpokoto project holding 678,000 ounces of gold in DR Congo during the first half of 2016.

Peter Marks, president of Armadale, disclosed on 10 September this development indicating that a significant step has been taken with the signing of an agreement with Africa-Mining Contracting Services.

This experienced mining contractor will work closely with Armadale in the construction and operation of the project, as well as the financing, by bringing USD 20 million to deploy Mpokoto, he explained.

According to Marks, the 6 to 12 coming months will be “very active” in this project which shows a potential of additional resources of 120,000 to 150,000 ounces of gold.

Armadale Capital Plc holds 80% of the Mpokoto project on 4 mining permits in the Katanga province. It holds, within the project, licences with a validity of 30 years which came into effect since September 2014 and is looking to produce about 25,000 ounces of gold per year over a mining life of nine years.