| Fri 14 May 2010, 8:00 | | AEA - African Eagle Resources plc - African Eagle signs letter of intent to |
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AEA
AEA
AEA - African Eagle Resources plc - African Eagle signs letter of intent to
develop gold mine at Miyabi, Tanzania, with Macquarie Harbour Mining 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
AFRICAN EAGLE RESOURCES plc
AFRICAN EAGLE SIGNS LETTER OF INTENT TO DEVELOP GOLD MINE AT MIYABI, TANZANIA,
WITH MACQUARIE HARBOUR MINING LIMITED
Another deal over African Eagle`s "non core" assets to free resources for
flagship nickel projects
African Eagle and ASX-quoted minerals group Macquarie Harbour Mining Limited
(ASX: MHM) have signed a Letter of Intent to enter a joint venture to develop a
gold mine at African Eagle`s Miyabi project in Tanzania.
Under the agreement, MHM will provide all the technical expertise and funding
for a Feasibility Study sufficient to enable MHM to make a decision to develop a
mining operation at the Miyabi Gold Project. African Eagle will retain 25% of
its interest in the project and its past exploration expenditure will be
credited against the development costs.
African Eagle`s Managing Director, Mark Parker comments "This transaction
provides a quick and effective route to take Miyabi into production, fully
crediting African Eagle`s past exploration expenditures against the costs of
developing the mine, which we believe will amount to a free-carry into
production. Macquarie Harbour Mining is keen to advance Miyabi into production
as quickly as possible, based on the resources already defined by African Eagle.
Part of the revenue from production will be invested in expanding the current
JORC resource of 520,000oz of gold and extending the mine life.
"The transaction represents further delivery on African Eagle`s stated intention
of developing into an operator, bringing in like-minded partner companies for
its extensive `non-core` copper, gold and uranium portfolio. African Eagle is
currently undertaking a pre-feasibility study at its Dutwa Nickel Project in
Tanzania, which will be completed around the end of the year."
To read MHM`s announcement of the transaction, see www.mhml.com.au
The principal commercial terms of the agreement between African Eagle and MHM
are as follows:
- African Eagle grants MHM an exclusive period of up to six months to review
and conduct legal and technical due diligence.
- During the due diligence period, the parties will draft a Joint Venture
Agreement under which under which MHM can earn a 75% share of African
Eagle`s interest in the Miyabi Gold Project in consideration for conducting
and funding a Feasibility Study, in the form of additional drilling,
metallurgy, pit design, operating and capital costs estimation, economic
analysis and other work as may be needed for the Board of MHM to reach a
decision to mine.
- At the inception of the Joint Venture, African Eagle shall be deemed to
have contributed US$ 6.5 million to the Joint Venture, which will be
credited against cash calls by the Joint Venture after the decision to
mine.
- Parties will invest a minimum of 12% of pre-tax net revenue into
exploration within the Miyabi Gold Project Area, contributed pro rata to
their respective interests.
For further information:
Mark Parker Euan Worthington
Managing Director Chairman
African Eagle Resources plc
+44 20 7248 6059 +44 20 7248 6059
+44 77 5640 6899 +44 77 5386 2097
Nicola Marrin
Seymour Pierce Limited, London
Nominated Adviser
+44 20 7107 8000
Charmane Russell
Russell & Associates, Johannesburg
+27 11 8803924
+27 82 8928052
Ed Portman / Leesa Peters
Conduit PR, London
+44 20 7429 6607
+44 77 3336 3501
Date: 14/05/2010 08:00:01 Produced by the JSE SENS Department.
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