DrBubb, on 23 February 2012 - 05:20 AM, said:
African Eagle Announces Completion of the First Stage of Asset Disposals to Syrah Resources Limited
I have reviewed an old list:
...And the ones that look interesting based on charts (see charts on Advfn
) and NAV's are :
UK:AFE / African Eagle Res - (#171961) L30.2mn at 6.63p / nav-4.06p T-1.60p / at 6.10p
African Eagle (AIM: AFE; AltX: AEA) is pleased to announce that, in accordance with an agreement dated 25th October 2011 (the "Agreement"), it has completed the first stage of an asset disposal programme to Syrah Resources Limited (Syrah), an Australian minerals resource company listed on the ASX (ASX: SYR), and has realised proceeds of A$695,120 (approx. £470,000). The Company anticipates that the disposal of the remainder of the assets to Syrah will be completed later in the year. The proceeds will contribute to funding for the development of the Company's flagship Dutwa nickel project in Tanzania.
The Agreement pertains to the disposal of eight licenses, two in Mozambique, five in Tanzania and one in Zambia.
The Company has completed the disposal of Twigg Exploration & Mining Ltda., its Mozambique subsidiary, which holds the Balama Graphite and Sena Uranium prospecting licences. As a result consideration of A$325,120 (approx. £220,000) has been paid to the Company.
In Tanzania, Syrah has made a down payment of A$100,000 to cover the submission of applications to transfer all of the five licences. Of these, the Company's three Wembere prospecting licenses have now been transferred to Syrah, resulting in a further payment of A$270,000. Total proceeds for the disposal of assets in Tanzania to date amounts to A$370,000 (approx. £250,000). For the two remaining Tanzanian licenses, Tanga and Shikula licences, Syrah will pay the Company A$90,000 on the completion of the transfer of each (total A$180,000 (approx. £120,000)). The Company anticipates that both these transfers will be completed later in 2012.
The final licence is African Eagle's Sasare North licence in Zambia, which expires in July 2012. If on or after expiry Syrah applies for a new licence over all or part of its area, Syrah will pay the Company A$25,000 on submission of the application and a further A$50,000 if the application is successful.
Trevor Moss, CEO, commented: "The early completion of the major part of this transaction reinforces our efforts to focus our full attention on the development of the Dutwa nickel project
and we appreciate the efforts of Syrah in its timely completion. The funds realised are significant and will be employed to partially fund the Dutwa bankable feasibility study."
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.
( Note: post tax NPV10 of $630M / 455Mn.shs = $ 1.38 / $1.56 = 88.5 p )
Relative to 88.5p /Range: L: 5.00 (5.6%) to H: 13.25 (15%) to 18p (20%)
Nickel Price - above is at $9/lb Ni
About African Eagle : AFE chart & Data
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.