LONDON–(BUSINESS WIRE)– 

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

13 August 2020

Armadale Capital Plc

(‘Armadale’ or ‘the Company’)

Assessment of Mahenge Natural Flake Graphite for Battery Applications

Armadale Capital plc (LON: ACP) the AIM quoted investment group focused on natural resource projects in Africa, is pleased to announce that it has commenced testing with Australia’s Commonwealth Scientific and Industrial Research Organisation (“CSIRO”) of the Company’s natural flake graphite from its 100%-owned Mahenge Graphite Project (the ‘Mahenge Graphite’) in south-east Tanzania, for battery applications.

This testwork follows on from previous programmes which have demonstrated that outstanding purity of up to of 99.99% Total Graphitic Carbon can be achieved using conventional treatment.

Armadale is also pleased to announce that it has been successful in its application to be the recipient of a co-funding dollar for dollar grant from CSIRO whereby every dollar spent by Armadale in undertaking testwork related to the testing of the Mahenge Graphite is matched by a CSIRO grant.

Highlights

• CSIRO will use its battery expertise and knowledge to evaluate the Mahenge natural flake graphite for its suitability for use in the battery graphite market
• Graphite battery electrodes will be constructed and tested under different loads to determine how the Mahenge Graphite compares to other graphite concentrates
• The test programme will run alongside and complement the previous testwork programme which has been completed and is expected to add significantly to the marketability of the Mahenge Graphite product
• Previous testwork has highlighted the premium quality of the Mahenge Graphite with the exceptionally high purity crucial for the battery market consistently achieved from the Mahenge region
• Armadale is also investigating the potential for downstream testwork in graphene production for the extremely high-value graphene market from its high quality graphite concentrate

Armadale Chairman, Nick Johansen, commented:

“We are extremely pleased to take this next step in our journey towards becoming a significant graphite producer, there is a great deal of value for shareholders in this next step which we are confident will highlight the premium quality of the Mahenge Graphite and allow us to confidently market it as a high-value product for the rapidly expanding EV market. We hope to be able to update the market consistently with regards to our progress with CSIRO.

“As previously referenced, the Company has been involved in progressive funding discussions with a range of other parties in regard to moving forward with project development funding, these discussions are continuing positively. The Mahenge Graphite Project is exceptional in its outstanding economics and represents a very attractive opportunity for financiers who wish to gain exposure at a crucial inflection point in its development. The Company hopes to be in a position to provide further updates on developments in the near-term.”

Graphite Testing Process

CSIRO will complete the testing in its Melbourne facility where the graphite will be characterised with Particle Size distribution, Scanning Electron Microscopy, BET surface area, Tap density, Ash Content and any contaminates.

Graphite battery electrodes will be prepared to construct coin cells in half-cell configuration. This will be similar to commercial battery electrode manufacture.

The half cells will then be tested with different current densities to determine the suitability of the natural flake graphite for the battery market.

CSIRO will collate the battery testing and issue a report on the evaluation of the Mahenge Graphite for use in battery applications and a comparison to commercial natural flake graphite powder currently used in battery applications.

**ENDS**

Notes

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

The Company owns the Mahenge Liandu graphite project in south-east Tanzania, which is now its main focus. The Project is located in a highly prospective region with a high-grade JORC compliant Indicated and inferred mineral resource estimate of 59.48Mt @ 9.8% TGC, making it one of the largest high-grade resources in Tanzania, and work to date has demonstrated Mahenge Liandu’s potential as a commercially viable deposit with significant tonnage, high-grade coarse flake and near surface mineralisation (implying a low strip ratio) contained within one contiguous ore body.

Other assets Armadale has an interest in, include the Mpokoto Gold project in the Democratic Republic of Congo and a portfolio of quoted investments.