| Mon 18 Apr 2011, 15:15 | | AEA - African Eagle Resources plc - Farm-in signed on Miyabi Gold Project |
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AEA
AEA
AEA - African Eagle Resources plc - Farm-in signed on Miyabi Gold Project,
Tanzania
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)
FARM-IN SIGNED ON MIYABI GOLD PROJECT, TANZANIA
African Eagle Resources plc ("African Eagle" or "the Company"; AIM: AFE; AltX
AEA) is pleased to announce that it has executed a farm-in agreement with
BrightStar Resources Limited ("BrightStar") over the Company`s Miyabi Gold
Project in Tanzania. This is in line with the Company`s intention to farm out or
spin out its non-core assets, and to concentrate on its nickel projects in
Tanzania.
Highlights
- BrightStar to expend US$3M in 30 months to earn 50%
- Minimum expenditure of US$1M required by BrightStar within the first 12
months
- BrightStar can earn 75% of the Project by sole funding and completing a
Feasibility Study
- African Eagle to be credited US$6.5 million against mine development costs
- Current JORC Resources 12.4Mt at 1.3g/t Au (520,000oz), 75% in Indicated,
with opportunities for expansion and higher grade zones demonstrated.
African Eagle`s Managing Director Mark Parker comments: "We are pleased that
Miyabi, which we believe to have a very promising future, will be developed by
BrightStar. This is a company which shares our confidence in Tanzania as a
mining investment destination and whose management and key staff have excellent
track records in the industry. The deal recognises the value African Eagle has
created at Miyabi while allowing the Company to maintain its focus on the Dutwa
nickel project, now at pre-feasibility stage"
Details of Farm-in Agreement
The key terms of the joint venture are as follows:
- BrightStar to spend US$3.0 million over 30 months to earn a 50% interest in
the Miyabi Project (Phase 1 of the Earning Period). A minimum of US$1.0
million is required in the first 12 months.
- BrightStar may elect to earn a further 25% interest by completing a
Feasibility Study for the Project (Phase 2 of the Earning Period).
- At completion of the Earning Period, African Eagle will contribute to
further costs at the project. However the accrued value of past expenditure
(US$6.5 million) will be credited to the African Eagle JV contribution, so
actual contribution of costs will not commence for some time.
- A royalty of 1.5% of gross revenue is payable to local Tanzanian interests
which were the original holders of the Prospecting Licences.
Commenting on the joint venture agreement, BrightStar`s Technical Director Mr
Paul Payne said "The Miyabi Gold Project has substantial, shallow resources with
excellent exploration upside. The work done by African Eagle has been first
class and has provided a comprehensive regional database from which we expect to
define additional resources."
BrightStar is listed on the Australian Stock Exchange under ticker BUT. The
Miyabi transaction strengthens BrightStar`s holdings in this highly prospective
region of Tanzania, which include the nearby Kitongo Project, an advanced gold
project with a JORC compliant inferred resource containing 290,000 ounces of
gold, previously developed by Anglo Ashanti, IAMGOLD and East Africa Mines.
Further information can be found on BrightStar`s website
www.brightstarresources.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
18 April 2011
For further information:
Please see the Company`s web site www.africaneagle.co.uk or contact one of the
following:
Bevan Metcalf - Finance Director /
Euan Worthington - Chairman
African Eagle Resources plc
+44 20 7248 6059
+44 77 5640 6899
Andrew Chubb/Bhavesh Patel
Canaccord Genuity Limited
+44 20 7050 6500
Guy Wilkes
Ocean Equities Limited
+44 20 7786 4370
Charmane Russell/Marion Brower
Russell & Associates, Johannesburg
+ 27 11 8803924
+ 27 82 8928052
About African Eagle
Since discovering a major nickel oxide deposit at Dutwa in Tanzania, African
Eagle is in transition from an explorer into a nickel company. The Company
completed a positive scoping study on the Dutwa deposit in July 2009 and is now
working towards a feasibility study.
In addition to Dutwa, African Eagle is also evaluating a second promising nickel
oxide at Zanzui, which is located 60 km from Dutwa. The Company holds a 49%
interest in the Mkushi Copper Mines joint venture in Zambia, for which a draft
feasibility study was completed in Q4 2008. It also holds a half million ounce
gold resource at the Miyabi project in Tanzania, and a portfolio of gold and
base metal exploration assets, including two projects in the Zambian Copperbelt.
Date: 18/04/2011 15:15:01 Produced by the JSE SENS Department.
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