To view the PDF file, sign up for a MySharenet subscription.

AFRICAN EAGLE RESOURCES PLC - Corporate and Dutwa Project Update and Changes to the Board

Release Date: 02/04/2013 08:00
Code(s): AEA     PDF:  
Wrap Text
Corporate and Dutwa Project Update and Changes to the Board

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” or the “Company”)


Corporate and Dutwa Project Update and Changes to the Board



African Eagle wishes to provide a corporate and project update as a result of the Company’s
current Strategic Partner search for the development of the Dutwa Nickel Laterite Project in
Northern Tanzania.

Following a strategic review undertaken with the assistance of its financial adviser, Cutfield Freeman
and Co Ltd., the Company has determined that the priority for the advancement of the Dutwa Project
is the search for a strategic partner. This has significantly advanced following a series of recent
meetings held with interested parties in Asia and elsewhere, and a number of confidentiality
agreements have been signed and a data room established. The interested parties are now working
through the available documentation. The Dutwa Nickel Laterite Project is an attractive project due to
its favourable mineralogy which allows nickel extraction using straightforward atmospheric tank
leaching instead of the complex high pressure acid leaching as required for most nickel laterite
projects.

Whilst the Strategic Partner search is ongoing, the Board of Directors has determined it is important to
effectively manage its resources and revise the near term focus of its development activities. These
changes will result in a reduction in the costs of its operations and optimise financial resources in the
near term.

Additionally, the Company advises that, by mutual agreement, David Newbold stepped down from the
Board of Directors effective 1st April 2013. He will still continue as CFO for a transitional period of six
months following which he will leave the Company. The Company expects that Robert McLearon
(Group Financial Controller) will thereafter assume Mr Newbold’s responsibilities in connection with
the Company’s finance function.

In the near term, the focus of the Company’s personnel within Tanzania will be advancing logistical
studies, progressing environmental studies, and exploring the potential of the Dutwa and Zanzui
licences to hold economic nickel sulphide mineralisation in addition to the significant nickel laterite
resources that have already been delineated. In addition, the planned integrated laterite mini-pilot
plant test work has been deferred until the Strategic Partner search has progressed sufficiently to
ensure clarity that the test programme will serve the full purpose of defining operational parameters
as it is expected that the Strategic Partner will wish to influence the nature of the test programme, as
a part of any funding it may provide for the finalisation of the bankable feasibility study.

Furthermore, after initiation by the Company of an internal review, the Tanzanian Revenue Authority
(“TRA”) has also undertaken review of the Company’s previous tax filings. The Company has
provided data to the TRA and is cooperating fully with its requests. The TRA has not disclosed the
results of its review. The Board cannot accurately forecast the level of any tax assessments or tax
liabilities that may result from such a review of the Company's tax returns to date. However, there can
be no assurance that the Company will not be subject to material assessments with respect to prior
years.

For further information, please visit www.africaneagle.co.uk or contact:

African Eagle Resources plc
Trevor Moss, CEO
Alex Buck
+44 20 7248 6059

Canaccord Genuity Limited (NOMAD and Joint Broker)
Andrew Chubb
+ 44 20 7523 8000

Ocean Equities Limited (Joint Broker)
Guy Wilkes
+44 20 7786 4370

Russell & Associates, Johannesburg
Charmane Russell or Marion Brower
+27 11 880 3924

Sponsor
Merchantec Capital

2 April 2013


About African Eagle
African Eagle Resources plc is a nickel development and exploration company listed on the London
AIM (AFE) and Johannesburg AltX (AEA) stock exchanges. The Company's flagship project is the
Dutwa Nickel project in Tanzania located about 25km south of Lake Victoria and 100km east of
Mwanza within greenstone gold belts which host many of Tanzania's operating and developing gold
mines.

Date: 02/04/2013 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story