ArmadaleCapital Plc completed the acquisition of the Liandu graphite project in Tanzania,it said July 11.
The company has entered into a deal to buy GraphiteAdvancement Pty. Ltd., which owns the Liandu project.
Armadale will issue 57.5 million ordinary shares of 0.1pence each in the company, and £450,000 of unsecured convertible loan notes forthe acquisition.
A 3% net smelter return royalty on the net proceeds of saleof product from the Liandu project is payable to investor group KabungaHoldings Pty. Ltd., which will hold a 12.73% interest in Armadale and a rightto nominate a director to its board following the acquisition.
Following the transaction, the vendors will hold 28.9% ofthe company's issued share capital.
The Liandu project has high-grade coarse flake graphite,demonstrated with up to 33.8% total graphite content identified from rock chipsampling.
Previous drilling in the area confirmed 60 meters at 10.7% TGC,including 24 meters at 12.9% TGC and 5 meters at 21.5% TGC.
An exploration program on the project is underway and adrilling campaign is expected to kick off in the third quarter, which will lookto define a maiden resource on the property.