Drilling underway
at the Dutwa nickel
project in Tanzania
 
London, England — MININGREVIEW.COM — 24 November 2010 – African Eagle Resources plc “’ a UK-incorporated mineral exploration and development company operating in Zambia, Tanzania and Mozambique “’ has sold its non-core uranium division to a private Australian company, Jacana Resources, in return for shares and cash.

“Our agreement with Jacana is a win-win arrangement for African Eagle and Jacana, providing the best opportunity to turn these uranium assets to account,” said African Eagle managing director Mark Parker. “The transaction will help African Eagle to concentrate its efforts and resources on its flagship Dutwa nickel project in Tanzania, while it will continue to benefit from the future development of the uranium projects.”

Under the terms of the agreement, African Eagle will transfer all its uranium holdings to Jacana Resources in exchange for Aus$1 million (R6.9 million) in shares and cash. The payment will be made in two tranches – A$200 000 (R1.4 million) in shares on signature of the agreement (20% of Jacana’s share capital), and A$300 000 (R2.1 million) in shares plus A$500 000 (R3.5 million) in cash or shares on Jacana’s IPO.

African Eagle will also nominate the non-executive chairperson of Jacana, and will be entitled to receive 20% of any options issued by Jacana prior to an IPO.

In mid-2007, African Eagle established a uranium division to hold the mineral rights to eight targets which the company held across Tanzania, Zambia and Mozambique. A strategic review in January 2009 concluded that the company would focus on its Zambian Dutwa nickel project, and non-core assets, including the uranium division, were put up for tender.

African Eagle has already successfully completed deals for its Igurubi and Miyabi gold projects with ASX-listed companies Peak Resources and Macquarie Harbour Mining respectively.