HomeEast AfricaAfrican Eagle sells Igurubi gold project

African Eagle sells Igurubi gold project

Resource drilling
at African Eagle’s
Dutwa Nickel
project in Tanzania
London, England — MININGREVIEW.COM — 08 April 2010 – Diversified exploration and development company African Eagle Resources plc – dual-listed on the LSE and the JSE – and Australian explorer Peak Resources Limited have agreed terms for Peak to acquire African Eagle’s 75% interest in the advanced Igurubi gold exploration project in the Lake Victoria Goldfield in Tanzania.

In a statement released here African Eagle revealed that in terms of the agreement, Peak would issue shares on achievement of agreed milestones, in consideration for the 75% interest, in a transaction that valued the project at some £2.6 million (R28.6 million). The disposal would enable African Eagle to conserve cash for its other initiatives, notably its flagship Dutwa nickel project.

African Eagle managing director, Mark Parker commented: “This transaction is in line with African Eagle’s transformation from explorer to producer, and its stated intention to focus its efforts on developing the Dutwa oxide nickel project to feasibility and into production.”

He added: “We are very pleased that this agreement with Peak will assure continuing exploration of the Igurubi project, and will allow us to participate though Peak in the project’s advancement and future success. This is likely to be the first of a series of deals relating to African Eagle’s non-core assets,” he added.

“Our objective from such deals is to ensure that all our legacy assets are properly investigated and explored in a timely fashion, to obtain fair value for our past investment and intellectual property, and to free cash and management time for our Dutwa nickel discovery,” he concluded.