| Wed 26 Mar 2008, 9:00 | | AEA - African Eagle Resources Plc - TWP Finance Acquires A Strategic Stake In |
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AEA
AEA
AEA - African Eagle Resources Plc - TWP Finance Acquires A Strategic Stake In
African Eagle
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
TWP Finance acquires a strategic stake in African Eagle
African Eagle Resources plc ("African Eagle" or "the Company", ticker AIM: AFE,
AltX: AEA) has been advised by TWP Finance (Pty) Ltd, a subsidiary of TWP
Holdings (a multi-disciplinary consulting engineering firm based in South
Africa) that TWP has acquired 9,515,499 ordinary shares in African Eagle,
representing a 4.48% interest in the issued shares of the Company.
Dean Cunningham, chief executive of TWP Finance, says this development reflects
that company`s commitment to becoming increasingly involved in early stage
exploration projects around the globe.
"We regard this development as an initial stake in African Eagle and intend
increasing our involvement in the medium to long term to develop a strategic
stake in the company," he says. "The acquisition of these shares gives us access
to exploration projects in Zambia, Tanzania and Mozambique and we can now
leverage our skills base and intellectual property to create an excellent
platform for investment opportunities.
"African Eagle is strategically well positioned in central and eastern Africa,
with significant opportunities across a number of key commodities, notably
copper, gold and uranium. This company has a respected exploration team on the
ground, with great contacts in the three regions in which it operates. It could
also serve as a springboard to the Democratic Republic of Congo (DRC) and other
countries.
"There`s perfect synergy in the coming together of our two companies and the
timing is opportune, given that African Eagle`s strategy has recently shifted
towards developing mining operations of its own, rather than bringing joint
venture partners into every project. TWP`s world-class engineers have the skills
and experience to assist in this strategy. Future involvement will revolve
around project and service inputs from our side, development partnerships on
AFE`s existing projects and the securing of new projects jointly by TWP Finance
and African Eagle working together.
Cunningham adds that the African Eagle shares are an attractive prospect at
present, as they are relatively undervalued despite the high metals prices in
the extended commodity cycle.
John Park, Chairman of African Eagle, welcomed the announcement by TWP,
commenting "TWP has skills, capabilities and assets which complement African
Eagle`s own asset and skills base very well. We see TWP as a preferred partner,
through project development partnerships or via the provision of services by TWP
Consulting," says Park. "The partners will also seek new joint involvements in
the future, which will be financed from an increase in the share price as
investors recognise the potential of this dynamic new affiliation, from the
strength TWP brings to the balance sheet and in the future, from project cash
flows."
"The timing is highly fortuitous, following as it does the African Eagle board`s
decision to take into production some of its mid-tier gold and copper assets.
African Eagle has a good track record of working closely with its partners to
ensure maximum benefits for all, and we are sure, will do so with TWP
Personally I`m looking forward very much to the evolution of the Company that
this first stake in African Eagle will stimulate."
John Park
Chairman
African Eagle Resources plc
26 March 2008
For further information:
African Eagle TWP
Mark Parker Dean Cunningham
Managing Director +27 82 490 6429
+44 20 7248 6059 +27116947635
+44 77 5640 6899
Nicola Marrin
Seymour Pierce Limited
Nominated Adviser
+ 44 20 7107 8000
Charmane Russell
Russell & Associates,
Johannesburg
+ 27 11 8803924
+27 82 8928052
Ed Portman / Leesa Peters
Conduit PR
+44 20 7429 6607
+44 (0) 7733 635 01
About African Eagle
African Eagle is a diversified 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 fast-tracked 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.
Zambia, Tanzania and Mozambique, the sites of African Eagle`s projects, are all
countries which have highly prospective geology, relatively low aboveground
risks and track records of successful major investments in the metals and
minerals industries.
African Eagle specialises in project generation and exploration. 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.
About TWP
TWP Holdings listed on the main board of the Johannesburg Stock Exchange in
November 2007, under the heavy construction sector, having burgeoned from a
small group of professionals into a highly capable resource focused engineering
project house - with a head count of more than 1300 - over the past 25 years.
The Group has evolved to a point where it can offer complete professional
solutions to the mining industry, with services spanning resource
identification, bankable feasibility studies, mine and production planning,
process engineering, project execution, delivery and project handover.
The value of projects currently under TWP management exceeds R70-billion and
some of its project pipeline extends beyond 2016. Income going forward is
largely secured, with funds already committed to many of these projects.
TWP Finance is a wholly owned subsidiary of TWP Holdings. It was created to take
advantage of the numerous opportunities available in the global resources and
commodity industry. With its own strategy and management structure, TWP Finance
boasts a dynamic team of financial professionals who are experts in project
evaluation and funding across the full spectrum of resources and commodities -
from exploration and development, right through to beneficiation and processing
of metals and minerals.
Date: 26/03/2008 09:00:04 Produced by the JSE SENS Department.
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