ACP Armadale Capital Plc

 
TIDMACP 
 
 

Armadale Capital Plc / Index: AIM / Epic: ACP / Sector: Investment Company

19 July 2013

Armadale Capital Plc ('Armadale' or 'the Company')

Investment Update

Armadale, the AIM quoted investment company focussed on natural resources and infrastructure projects in Africa, announces that it has agreed to an extension of the repayment by Trinity Asset Management (Pty) Ltd ('TAM') of the loan by the Company made in connection with the disposal of its operating businesses to Mine Restoration Investments Limited ('MRI'), in June 2012.

MRI Loan

Following the disposal of its operating businesses in June 2012, the Company holds an approximate 40 per cent equity interest in MRI, together with a loan, which currently stands at approximately ZAR15 million. As envisaged at the time of the announcement of the Armadale full year results on 4 June 2013, the Company has agreed to extend repayment of the loan until 12 January 2014, by which time it expects MRI's commercial anthracite coal briquetting operations to have commenced. Interest accrues on the loan at 2% above prime rate in South Africa, which is currently 8.5%. .

Mine Restoration Investments Ltd ("MRI")

MRI, the Company's largest investment, is listed in South Africa and aims to develop profitable operations within the South African mining industry, primarily through the commercialisation of its anthracite coal briquetting operation and acid mine drainage project.

MRI is in the final stages of constructing and commissioning a coal briquetting plant at an anthracite coal mine in the KwaZulu-Natal Province, South Africa. The commencement of MRI's commercial anthracite briquetting operation is anticipated to reach full production by the end of September this year. MRI has recently announced its subsidiary Octavovox Pty Ltd has procured a loan facility from AfrAsia Special Opportunities Fund, of ZAR11 million that ensures it is now fully funded through to commercial production of the coal briquetting plant. The Company remains positive about the commercial possibilities and prospects for the coal briquetting business and will keep shareholders informed of developments.

Outlook

The Board of Armadale intends to continue to seek to diversify the investment portfolio of the Company and is reviewing a number of opportunities in the natural resources area. It will also continue to monitor its investment in MRI and looks forward to the commencement of commercial operations of MRI that it believes will be positive for its investment.

Peter Marks, Chairman of Armadale, said, "I am pleased to report that MRI is in the final stages of constructing and commissioning its coal briquetting plant in South Africa, with operations on track to reach full production in September 2013. Furthermore, with MRI's coal briquetting operations now fully funded through to commercial production, we are confident that Armadale's interest in MRI will generate a return for the Company as we look to expand our investment portfolio. In line with this, we are examining a number of prospective projects operating in the natural resources and infrastructure sectors to generate value for Armadale and its shareholders, which we hope to announce in the near term."

**ENDS**

Enquiries:

 
Company 
Peter Marks, Chairman                             +44 207 233 1462 
Charles Zorab 
Nomad and broker: finnCap Limited 
Stuart Andrews/Petre Norton                       +44 207 220 0500 
Press relations: St Brides Media & Finance Ltd. 
Susie Geliher/Charlotte Heap                      +44 207 236 1177 
 
 

Notes

Armadale Capital Plc is focussed on investing in and developing a portfolio of investments, targeting the natural resources and/or infrastructure sectors. The Company, led by a team with operational experience and a strong track record in Africa, has a strategy of identifying high growth potential businesses where it can take an active role in their advancement.

Armadale currently holds approximately a 40% interest in Mine Restoration Investments Ltd, a South African listed company, which aims to develop profitable operations within the South African mining industry through its coal briquetting operation in KwaZulu Natal and acid mine drainage project in the Witwatersrand basins.

More information can be found on the website www.armadalecapitalplc.com

 
 
 
This information is provided by Business Wire 
 
 

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