Armadale Capital PLC entered into a formal agreement to sell its noncore Mpokoto gold project in the Democratic Republic of the Congo to African Royalty Co. Pty. Ltd., a company related to Arrow Mining Pty. Ltd.
Arrow Mining will take over operations at Mpokoto and will pay Armadale a 1.5% royalty on gold sales. Further financial details were not disclosed.
A feasibility study outlines Mpokoto as a 720,000-tonne-per-annum operation that will produce an average of 24,900 ounces per annum over 4.5 years.
Armadale said Jan. 11 that it will focus on its Mahenge Liandu graphite project in Tanzania after the sale.
The company noted that Kisenge Mining Pty. Ltd. withdrew from the previous joint venture agreement for the project, allowing the agreement with Arrow Mining to proceed.
Armadale entered into a heads of agreement with Arrow Mining in late October 2018 after canceling negotiations started in January 2018 with Weghsteen Capital Advice SA.