| Wed 26 Mar 2008, 9:00 | | TWP - TWP Holdings - Twp Finance Acquires Shareholding In African Eagle |
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TWP
TWP
TWP - TWP Holdings - Twp Finance Acquires Shareholding In African Eagle
Resources
TWP Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 2003/025640/06)
Share code: TWP
ISIN: ZAE000110763
("TWP" or "the company")
TWP FINANCE ACQUIRES SHAREHOLDING IN AFRICAN EAGLE RESOURCES
TWP Finance (Pty) Limited ("TWP Finance"), a wholly owned subsidiary of TWP
Holdings Limited ("TWP"), has acquired a shareholding of just under 5% in
African Eagle Resources plc ("African Eagle"), an AIM Listed UK-based mineral
resources company exploring for and developing copper, gold and uranium deposits
in eastern and central Africa.
Dean Cunningham, chief executive of TWP Finance, says this development reflects
the company`s commitment to becoming increasingly involved in early stage
exploration projects around the globe. In due course Cunningham will become a
member of African Eagle`s board as its South African representative.
"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 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
African Eagle`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, adds: "TWP has certain skills,
capabilities and assets that will complement African Eagle`s extensive asset and
skills base in the three countries we are focused on.
""African Eagle regards TWP as a preferred partner, through development
partnerships or via the provision of services through 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."
TWP Finance
TWP Finance 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.
The company has developed robust relationships with most funding institutions
and investment banks in South Africa and UK, USA and Europe. Its focus is not
commodity or resource specific and it is unrestricted by geographic boundaries.
"These high level relationships - both locally and internationally and primarily
with TWP Holdings - put us in an ideal position to transform our group`s
intellectual property, relationships and global footprint into investment
opportunities which will be held by TWP Finance," says Cunningham. "And we`re
looking to rapidly develop a significant portfolio of commodity and resource
exposures. Our existing clients can also benefit from our valued added services
such as financial engineering, market intelligence and commodity analysis, over
and above our world class consulting abilities.
"Against a background of increasing demand for a broad base of commodities in
the international market, particularly in Asia, TWP Finance is in the right
place at the right time - with the right people - to optimally leverage the
current commodity and resources boom."
Note to editors
TWP Holdings listed on the main board of the Johannesburg Stock Exchange under
the heavy construction sector in November 2007, 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.
Its market offering has evolved to a point where the group is the only complete
professional solutions supplier 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
parts of its project pipeline extend beyond 2016. Income going forward is
largely secured, with funds already committed to many of these projects.
TWP has also diversified into sectors that include the cement industry, power
supply and distribution, water supply and roads. The group will continue to
identify and exploit new opportunities wherever these may occur.
From its base in South Africa, TWP has exported its expertise beyond this
country`s borders to North and South America, Australasia and other parts of
Africa, while its track record in southern Africa includes some of the largest
and most complex mining greenfields projects on the continent.
Headquartered in Johannesburg, TWP has offices in Rustenburg and Polokwane in
South Africa, in Perth, Australia (TWP Australia) and in Ankara, Turkey (TWP
Eurasia) as part of a drive to service new markets and geographies.
For further information:
TWP Finance African Eagle
Dean Cunningham Mark Parker
Chief Executive Managing Director
Cell +27 82 490 6429 Phone: +44 20 7248 6059
Phone: +27 11 694 7635 Cell: +44 77 5640 6899
Fax: +27 11 356 7500
26 March 2008
Sponsor
Nedbank Capital
Date: 26/03/2008 09:00:07 Produced by the JSE SENS Department.
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