| Mon 22 Nov 2010, 9:00 | | AEA - African Eagle Resources Plc - African Eagle and Jacana Sign Uranium Vend- |
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AEA
AEA
AEA - African Eagle Resources Plc - African Eagle and Jacana Sign Uranium Vend-
In deal
African Eagle Resources plc
Incorporated in England and Wales
(Registration number 3912362)
(AIM share code: AFE AIM ISIN: GB0003394813)
(JSE share code: AEA JSE ISIN: GB0003394813)
AFRICAN EAGLE AND JACANA SIGN URANIUM VEND-IN DEAL
African Eagle Resources plc (AIM: AFE; AltX: AEA) announces that it has vended
its non-core uranium division to Jacana Resources Limited, a private Australian
Company, in return for shares and cash.
African Eagle`s Managing Director Mark Parker comments: "Our agreement with
Jacana is a win-win arrangement for African Eagle and Jacana, providing the best
opportunity to turn these uranium assets to account. The transaction will help
African Eagle to concentrate its efforts and resources on its flagship Dutwa
nickel project in Tanzania, while it will continue to benefit from the future
development of the uranium projects."
Under the terms of the agreement, African Eagle will transfer all its uranium
holdings to Jacana Resources Limited in exchange for one million Australian
dollars in shares and cash. The payment will be made in two tranches:
* A$200,000 in shares on signature of the agreement (20% of Jacana`s
share capital)
* A$300,000 in shares plus A$500,000 in cash or shares on Jacana`s IPO.
African Eagle will also nominate the non-executive Chairman of Jacana and will
be entitled to receive 20% of any options issued by Jacana prior to an IPO.
African Eagle`s Zambian partner Kapumba Mining Limited, will receive 7.5% of the
Company`s payments in consideration of its 50.1% holding in the Lunga uranium
area.
In mid-2007, African Eagle established a uranium division to hold the mineral
rights to eight targets which the Company held across Tanzania, Zambia and
Mozambique. A strategic review in January 2009 concluded that the Company would
focus on its Zambian Dutwa nickel project, and "non-core" assets including the
uranium division were put up for tender. African Eagle has already successfully
completed deals for its Igurubi and Miyabi gold projects with ASX-listed
companies Peak Resources Ltd and Macquarie Harbour Mining Ltd respectively.
Note to editors
Jacana Resources Limited is an Australian unlisted public company with a vision
of becoming a world-class uranium explorer, and a long-term aim of becoming a
uranium miner. It intends to seek a listing on the Australian Stock Exchange in
2011. Information on Jacana, its management and projects is available at
www.jacanaresources.com.au.
Technical terms
A glossary of technical terms used by African Eagle in this announcement and
other published material may be found at www.africaneagle.co.uk/p/glossary.asp
Sponsor
Merchantec Capital
22 November 2010
For further information:
Mark Parker
Managing Director
African Eagle
+44 20 7248 6059
+44 77 5640 6899
David Banks
Nicola Marrin
Seymour Pierce Limited, London
Nominated Adviser
+ 44 20 7107 8000
Guy Wilkes
Ocean Equities Limited
+44 20 7786 4370
Charmane Russell
Russell & Associates, Johannesburg
+ 27 11 880 3924
+27 82 892 8052
Ed Portman / Leesa Peters
Conduit PR, London
+44 20 7429 6607
+44 77 3336 3501
About African Eagle
African Eagle is currently developing the major Dutwa nickel laterite in
Tanzania. The Company discovered Dutwa in 2008, completed a scoping study on in
June 2009, and is now conducting a feasibility study. The deposit now contains
an Inferred Resource (JORC 2004) of 98.6 Mt at 0.93% nickel. Initial
metallurgical work indicates that the laterite will be able to be processed with
standard heap leaching and there is no need for a costly HPAL facility. African
Eagle is also evaluating a second promising nickel laterite deposit at Zanzui in
Tanzania, 50km south of Dutwa, which is currently at the drilling and testing
phase.
In December 2008, African Eagle resolved to prioritise the Dutwa project,
because the Board believes that, of all the Company`s projects, it offered the
greatest potential to add value. To take its other discoveries into production,
African Eagle is seeking industry partners with records of successful mine
development, by means of joint ventures, farm-ins, spin-outs or other
mechanisms. These include a 49% interest in the Mkushi Copper Mines joint
venture project in Zambia, for which a draft feasibility study was completed in
Q4 2008; the Miyabi gold project in Tanzania which has a half a million ounce
JORC gold resource; the Ndola and Mokambo projects in the Zambian Copperbelt;
and the Igurubi gold project in Tanzania.
Zambia, Tanzania and Mozambique, the sites of African Eagle`s projects, are all
countries which have highly prospective geology, relatively low above-ground
risks and track records of successful major investments in the metals and
minerals industries.
Date: 22/11/2010 09:00:01 Produced by the JSE SENS Department.
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