Armadale Capital plc (LON: ACP) said today it received its mining licence for its 100%-owned Mahenge graphite project in south-east Tanzania from the Tanzanian Ministry of Energy and Minerals.
The company said that a definitive feasibility study shows a pre-tax net present value of $430 million, internal rate return of 91% and payback period of 1.6 years.
“Receipt of the 10-year Mining Licence for the Mahenge Liandu graphite project is one of the final and most important de-risking milestones for the Company and allows us to push forward towards construction of our planned initial Stage 1 60,000 tonne per annum capacity for the project – an initiative which will bring significant benefits to stakeholders, both local communities and plc level investors,” said Armadale Chairman, Nick Johansen.
“Armadale continues to make progress in other crucial workstreams and as previously indicated, we are making positive progress in development funding options specifically a debt package for the project, the Company is also currently in discussions with a number of potential finance partners; we are hoping to be able to announce some further progress with regards to these efforts and also with our offtake discussions in the near term.”