| Mon 6 Feb 2012, 9:00 | | AEA - African Eagle Resources Plc - Close of IFC Funding |
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AEA
AEA
AEA - African Eagle Resources Plc - Close of IFC Funding
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)
CLOSE OF IFC FUNDING
African Eagle Resources plc (AIM: AFE; AltX: AEA) is pleased to announce that
further to its announcements of 9 November 2011 and 4 January 2012, the Company
has closed the subscription agreement and issued and allotted 45,509,570
ordinary shares of 1p each in the capital of the Company ("Ordinary Shares") to
IFC, a member of the World Bank Group, at a placing price of 6.8 pence per share
to raise GBP3.1 million (approximately US$5 million). Funds will primarily be
used to finance the evaluation of the Company`s Dutwa Nickel Project.
Application to the London Stock Exchange has been made for these new Ordinary
Shares to be admitted to trading on the AIM market of the London Stock Exchange
("Admission"). It is expected that Admission will become effective on or around
8.00 a.m. on 9 February 2012.
The new ordinary shares will rank pari passu with the existing Ordinary Shares
of the Company.
Following Admission of the new Ordinary Shares, the Company will have
455,095,698 fully paid Ordinary Shares in issue and IFC will have an interest in
45,509,570 Ordinary Shares, representing 10.0% of the Company`s total voting
rights.
About Dutwa
Dutwa was discovered in 2008 and is a nickel laterite project with unusually
beneficial geometallurgical properties. Since discovery, the progress of
development has been rapid. Dutwa is defined by a JORC resource of 99 million
tonnes at 0.93% Ni, offering ready mining from two hilltop deposits and
straightforward low consumption atmospheric acid leaching, leading to strong
economics. The most recent financial modelling, prepared in early 2011,
projected cash operating costs of approximately $3.50/lb., a post tax NPV10 of
$630M at $9/lb. nickel and a projected capital payback period between three and
five years. The current BFS and ESIA development is directed toward defining the
full environmental, social, technical and economic performance of Dutwa.
About African Eagle
African Eagle Resources plc is a junior mining developer and explorer with
development projects in Tanzania and Zambia. The Company`s flagship project is
the Dutwa Nickel project, located about 25 kilometres south of Lake Victoria and
140 kilometres east of Tanzania`s second city, Mwanza, within greenstone gold
belts which host many of Tanzania`s operating and developing gold mines. The
Company is quoted on the AIM market of the London Stock Exchange (AIM: AFE) and
on Johannesburg`s AltX.
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
6 February 2012
Date: 06/02/2012 09:00:02 Produced by the JSE SENS Department.
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