Armadale Capital (LON:ACP) remains in talks over a finance package to build its Mpokoto gold mine in the DRC.
African Mining Contracting Services Group (A-MCS) offered to put up US$20mln to build the mine last June but has yet to conclude its due diligence.
In a statement today, Armadale said discussions with A-MCS were still ongoing.
“They are continuing with their review of the DFS [definitive feasibility study] and our short term aim remains to finalise project finance for at least US$20 million. Initial production is dependent on the receipt of this financing and accordingly this is no longer expected in H1 2016.”
At a gold price of US$1,250 per oz, the DFS indicated revenue of US$138.6mln from Phase One of the project, with capital costs of US$25mln and cash operating costs of US$792 per oz.
The company added exploration at Mpokoto will continue through 2,000 metres of auger drilling and 2,500 metres of diamond drilling in approximately 150 holes.
Losses for the year to December were £992,000 (£1.08mln) which included a £316,000 write-down of its interest in briquette business MRI.