HomeBase MetalsAfrican Eagle seeks funding for Tanzanian nickel project

African Eagle seeks funding for Tanzanian nickel project

Resource drilling
at Dutwa Nickel
project in Tanzania
London, England — MININGREVIEW.COM — 05 March 2010 – Diversified exploration and development company African Eagle Resources plc – dual-listed on the LSE and the JSE – is in talks with mostly Asian and European metals buyers to raise funds for its nickel project in Tanzania due to tight lending from banks.

In an e-mail from here, managing director Mark Parker told Reuters that the company “’ whose Dutwa nickel project could cost up to US$450-million (R3.4 billion) to develop to produce 20 000 to 30 000 t of contained nickel per year “’ would also pursue options to raise funds through debt and equity.

“We have had a great deal of interest in Dutwa and are confident that we will be able to raise the funds through debt and equity to complete the feasibility study and develop the project,” he added. “Off-take partners are only one of several financing options we are looking at, but we are not yet at the stage of signing with any of them."

Parker said that despite demand for nickel previously rising by about 5% year-on-year, the firm was conducting further nickel drilling at Ngasamo, with more drilling expected at Wamangola in Tanzania. The drilling could be completed in the second quarter of 2010, and a full deposit model would be compiled in the third quarter, while a final feasibility study was expected in 2011.