African Eagle Resources Regulatory News (AFE)

22 May 2006 09:58

African Eagle Resources PLC22 May 2006 African Eagle Resources Plc Equity Fundraising of £3.35 million African Eagle Resources plc (ticker AFE, the "Company"), the AIM-listed mineral resources company, has raised a total of £3.35 million (before expenses) by way of a placing to new and existing investors of 27,916,670 new ordinary shares of one pence each ("Ordinary Shares") at an issue price of 12p per Ordinary Share (the "Placing"). The capital raised will provide the Company with additional funds to accelerate the economic assessment of the Mkushi Copper Mines towards a decision to restartproduction, and to advance the Company's other key projects for development in partnership with other operators. Application has been made for the admission of the new Ordinary Shares to trading on AIM and dealings are expected to commence on 25 May 2006. Mark Parker, Managing Director, commented: "We completed this financing underdifficult market conditions because we want to advance the Mkushi Copper Minesproject as quickly as possible. We believe that the project compares extremelyfavourably with other developments underway in the region, with robust economicsacross a wide range of likely metal prices. "We are keen to complete a full scoping study by the end of the year to reviewthe possible routes to development. We are also actively seeking developmentpartners for this and all of our projects. "We are delighted that the placing has brought several high quality institutionsonto our register of shareholders." John ParkChairman African Eagle Resources plc For further information, see the Company's web site www.africaneagle.co.uk orcontact one of the following: Mark ParkerManaging Director+44 20 7248 6059+44 77 7980 1159 Chris DaviesOperations Director+44 20 7248 6059+44 78 6672 9959 Leesa Peters or Pam SpoonerConduit PR+44 20 7429 6600+44 78 1215 9885 This information is provided by RNS The company news service from the London Stock Exchange