Armadale seeks confirmation on 'passed' resources legislation in Tanzania

Armadale Capital said it was awaiting confirmation that Tanzania's government had passed legislation governing the use of the country's mineral wealth.

The AIM-quoted investment company's main asset in the central African country was the Mahende Liangua graphite project, which the company boasted was one of the largest high grade graphite resources in the country.

On 29 June, draft legislation was published that had been tabled in the Tanzanian parliament and Armadale said subsequent reports indicated lawmakers had passed two bills, on Natural Wealth and Resources and Natural Wealth and Resources Contracts, the company said in a statement.

Management said it would seek advice about the impact which the new laws might have on its operations and provide further updates as appropriate.

According to analysts at SP Angel, the bills allowed for the review of new and existing agreements and prohibited the resolution of legal disputes relating to the country's mineral wealth to be settled in foreign courts, among other measures.

Shares were down -8.20% to 1.40p at 16:22 BST.