| Thu 20 Dec 2007, 9:00 | | AEA/AFE - African Eagle Resources Plc - Second share subscription by Phelps |
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AEA
AEA
AEA/AFE - African Eagle Resources Plc - Second share subscription by Phelps
Dodge Mining (Zambia) Limited
African Eagle Resources Plc
(Incorporated in England and Wales, registered number 3912362)
AIM share code: AFE
AIM ISIN: GB0003394813
JSE share code: AEA
JSE ISIN: GB0003394813
SECOND SHARE SUBSCRIPTION BY PHELPS DODGE MINING (ZAMBIA) LIMITED
African Eagle Resources plc ("African Eagle" or "the Company", ticker AIM: AFE,
AltX: AEA) today announces that under the earn-in agreement signed on 3 August
2006 between the Company and Phelps Dodge Mining (Zambia) Limited (PDMZ), the
latter has subscribed for a second tranche of Ordinary Shares in the Company.
PDMZ has subscribed for a tranche of 4,196,293 Ordinary Shares in the Company at
a price of 11.64625 pence per Ordinary Share, representing a 10% premium to the
average closing mid-market price of AFE`s shares for the 10 consecutive dealing
days immediately preceding 17 December 2007 and equivalent to a value of
US$1,000,000 or GBP488,710.78. Following this issue, PDMZ now holds
approximately 4.76% of the Company`s issued share capital. Application has been
made for the admission of the new Ordinary Shares to trading on AIM and dealings
are expected to commence on or about 24 December 2007.
Under the terms of the earn-in agreement, African Eagle is spending at least 75%
of the total amount subscribed on an agreed 15-month exploration programme on
the Ndola licence in Zambia. The balance will be spent on other African Eagle
projects and general working capital. PDMZ can earn a 51% interest in the
project by spending a further US$3 million on exploration and then an additional
19% by completing a bankable feasibility study.
African Eagle`s Managing Director, Mark Parker, comments: "We are pleased that
PDMZ has completed its second share subscription, showing its continuing
positive view of the Ndola project."
John Park
Chairman
African Eagle Resources plc
20 December 2007
For further information, see the Company`s web site www.africaneagle.co.uk or
contact one of the following:
Mark Parker
Managing Director
+44 20 7248 6059
+44 77 5640 6899
Ed Portman/ Leesa Peters
Conduit PR
+44 20 7429 6607/+44 7733 363 501
Nicola Marrin
Seymour Pierce Limited
Nominated Advisers & Brokers
+ 44 20 7107 8000
James Duncan
Russell & Associates, Johannesburg
+ 27 11 8803924 / +27 82 8928052
About African Eagle
African Eagle is a mineral exploration and development company operating in
eastern and central Africa. The Company`s principal advanced projects are the
Mkushi Copper Mines project in Zambia and the Miyabi gold project in Tanzania,
which are being prioritised towards production. The Company also holds a large
well-balanced portfolio of promising earlier stage gold and base metal projects,
including the Ndola copper project and the Eagle Eye iron-oxide copper gold
project.
African Eagle`s projects are in Zambia, Tanzania and Mozambique, countries which
all have highly prospective geology, relatively low above-ground risks and track
records of successful major investments in the metals and minerals industries.
African Eagle specialises in project generation and exploration and has a highly
motivated team, proven management and an experienced board. To take its
discoveries into production, it seeks to sign up industry partners with records
of successful mine development. These joint ventures and, in time, the revenue
from advanced projects, will finance future exploration and new discoveries.
Date: 20/12/2007 09:00:32 Produced by the JSE SENS Department.
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