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African Eagle to sell remaining Zambian assets to Elephant Copper

Published: 19:52 27 Jul 2012 AEST

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African Eagle Resources (LON:AFE) said it has executed a binding agreement to sell its remaining Zambian copper assets to Elephant Copper.

The assets to be sold are the wholly owned Katanga Resources Ltd and its 49.9 percent interest in Kujima Mining and Exploration Ltd which had a book value of £4.2 million at the end of 2011.

Both companies hold prospecting licences at varying stages of exploration and Katanga also owns 49 percent of Mkushi Copper Joint Ventures Ltd, a JV with Ratel Group Ltd that holds a mining licence at the Mkushi mine.

Elephant Copper is paying 15 million company shares and African Eagle will retain a 2 percent net smelter royalty on the Katanga assets.

The transaction concludes the disposal of its non-core exploration assets and is expected to complete within three months.

African Eagle said the structure of the deal allows it to potentially enjoy future upside from the copper assets whilst enabling it to focus fully on the development of the flagship Dutwa nickel project in Tanzania.

Elephant Copper is a private company, with a number of projects in Namibia, Republic of Congo and Botswana, which is seeking to list on the TSX-V Exchange via a reverse takeover of Credent Capital Corp (CVE:CCC).

African Eagle is a mining explorer and developer with development projects in Tanzania and Zambia. 

It aims to publish a bankable feasibility study (BFS) for the Dutwa project in the first quarter of next year, while targeting production at the site by the end of 2015.

In a separate statement today, the group announced the appointment of Ambassador Paul Rupia as an independent non-executive director with immediate effect.

Ambassador Rupia is an internationally known and well respected Tanzanian statesman with over 49 years experience in the Tanzanian public service.

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