| Wed 4 Jan 2012, 9:00 | | AEA - African Eagle Resources plc - IFC subscription agreement signed |
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AEA
AEA
AEA - African Eagle Resources plc - IFC subscription agreement signed
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)
IFC SUBSCRIPTION AGREEMENT SIGNED
Further to the announcement of 9 November 2011, African Eagle Resources plc
("African Eagle" or "the Company"; (AIM: AFE; AltX: AEA) is pleased to announce
that, subsequent to the requisite disclosure period and other conditions
precedent, the IFC, a member of the World Bank Group, and the Company have
signed a subscription agreement (the "Agreement") confirming the subscription
by IFC for a 10% equity share in the Company through an investment of
approximately US$5 million (GBP3.1 million), primarily to finance the evaluation
of the Company`s Dutwa Nickel Project.
The Agreement reflects the terms previously announced and will result in an IFC
investment of GBP3.095m in African Eagle Resources. The funds are expected to
be disbursed by the IFC in January 2012 once the Company has satisfied certain
standard conditions precedent under the Agreement. The funds will primarily
contribute to the bankable feasibility study of the Company`s Dutwa Nickel
Project, which is already underway and is scheduled for completion around the
end of 2012.
African Eagle has agreed publicly to disclose any material payments to the
Tanzanian Government, as per IFC`s requirements.
Trevor Moss, African Eagle CEO commented: "We are pleased to have secured the
IFC`s investment through the signature of the final form subscription agreement
and are working hard to satisfy the final outstanding conditions so that funds
can be disbursed in January whilst progressing with our bankable feasibility
study for Dutwa"
IFC`s Head of Mining, Tom Butler, commented: "IFC is pleased to have signed an
equity agreement with African Eagle Resources to support the company`s Dutwa
nickel project in Tanzania, which has the potential to become a major African
nickel producer should the current feasibility study work continue to be
successful. We look forward to helping African Eagle Resources implement
environmental and social best practices for its mining activities."
Sponsor
Merchantec Capital
4 January 2012
For further information, Please see African Eagle`s web site at
www.africaneagle.co.uk or contact one of the following:
African Eagle Resources plc
Trevor A. Moss (CEO) + 1 925 577 1078
Mark Parker (Director) + 44 207 248 6059
Euan Worthington (Chairman) +44 775 386 2097
Canaccord Genuity Limited
Rob Collins + 44 207 050 6500
Andrew Chubb
Ocean Equities Limited
Guy Wilkes +44 20 7786 4370
Russell & Associates, Johannesburg
Charmane Russell +27 11 880 3924
Marion Brower
ABOUT IFC
IFC, a member of the World Bank Group, is the largest global development
finance institution focused on private sector development in frontier and
emerging markets. IFC provides financing to help businesses develop sustainable
projects, thereby helping to reduce poverty by creating employment
opportunities, supplying essential services, facilitating broader local supply
chains and increasing government revenues. IFC aims to increase the amount
of seed financing it provides to exploration-stage companies through its early
equity mining program, as well as providing support to mid-tier mining companies
by participating in project and corporate financing partnerships that will
support mining development and expansion. IFC will continue to work with mining
majors to develop large projects with the potential to transform national
and / or regional economies. IFC`s global mining portfolio spans 37 countries,
of which 17 are in Africa, and totals more than US$400 million. IFC is also
expanding its work in Advisory Services for the mining sector, by providing
supply chain SME (Small and Medium Enterprise) capacity building, supporting
community engagement so that local communities can benefit more from mining
activities, and new programs to help the industry to use resources more
efficiently with less impact on the environment. For more information,
visit www.ifc.org.
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