(Ecofin Agency) - Mining firm Armadale Capital which operates the Mpokoto gold project in DR Congo, raised £825,000 by placing 41.25 million shares at 2p a share with new and existing investors. The firm said it would use the money to support the development of the Liandu graphite project which it is acquiring in Tanzania.

“Having identified high grade graphite mineralisation at the Liandu project in Tanzania, we are focussed on implementing a fast paced development programme and are targeting the delivery of a maiden resource estimation later this year,” said Armadale’s Chairman, Peter Marks.

Armadale Capital announced at the beginning of the month it would acquire the Liandu project. At the time it also said the move was part of its strategy to develop a portfolio of more profitable projects in Africa. The firm signed with the project’s former owner, Graphite Advancement Tanzania, a contract to fully (100%) acquire the project.

The Liandu project is adjacent to the Epanko and Mahenge graphite projects which are respectively held by Kibaran Resources and Black Rock Mining in Tanzania. Epanko holds probable and proven ore reserves of 10.9 million tons at 8.6%TGC while Mahenge has a global resource of 131 million tons at 7.9% TGC.

Louis-Nino Kansoun