Armadale Capital (LON: ACP) shares have surged on Friday after the company announced it has received the mining licence for its Mahenge Graphite Project in southeast Tanzania from the Tanzanian Ministry of Energy and Minerals.
The Mining Licence provides Armadale with exclusive development and mining rights over the graphite resources within the 8.54km mining licence.
The company described it as a “major de-risking milestone for investors” and said it wants to build a “significant high-grade graphite mine with robust economics.”
Armadale Chairman, Nick Johansen, commented: “We are delighted to announce another crucial step forward in the development of the Mahenge Liandu graphite Project and we also wish to thank the Tanzanian Ministry of Energy and Minerals for their considerable support throughout the application process. In addition, we would also like to extend our thanks to key members of the wider Armadale team for their efforts in completing this important piece of work.
“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.”
Armadale's shares are currently up 18.57% from Thursday's close at 5.4p, increasing its strong year-to-date gains.
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