African Eagle Resources Regulatory News (AFE)

23 May 2005 07:01

African Eagle Resources PLC23 May 2005 African Eagle Resources plc Heads of Agreement Signed for Joint Venture in Zambia African Eagle Resources ("the Company", ticker AFE.L) is pleased to announce thesigning of a Heads of Agreement covering the Company's Lunga licence in Zambia. African Eagle's Chairman John Park comments "Seeking appropriate partners whocan add value to our projects has been a thrust of our strategy for some timeand we are delighted to have forged this alliance with a partner who has much tocontribute to the exploration and finance of one of our promising licence areas.The arrangement will free African Eagle's own resources and enable us to focusmore closely on our designated key projects". Under the agreement, MSA Projects (Pty) Ltd ("MSA Projects") of South Africa canearn a 50% interest in the Lunga licence in Zambia by operating and managingexploration costing US$1 million over the next three years, subject to a minimumexpenditure of US$250,000 within the next 18 months. MSA Projects can then earnan additional 25% interest in the first mining project and 20% interests in anyother mining projects identified within the licence by completing bankablefeasibility studies. Lunga is a 1,956 km2 exploration licence situated within the Lunga basin incentral Zambia, which has the potential for various styles of mineralisationincluding sediment hosted Copperbelt type, Iron Oxide Copper Gold ("IOGC"),carbonate-hosted zinc and calcrete uranium deposits. Exploration recentlycompleted by African Eagle, including airborne geophysics, has greatly improvedunderstanding of the geology and a limited drilling programme has intersectednear-economic grades and thicknesses. MSA Projects is a Johannesburg-based company with an impressive track record ofdiscovering economic mineral deposits. Since 1992, exploration conducted by MSAProjects has led to three mines being brought into production in South Africa:the Messina platinum mine, the Marsfontein diamond mine and the Klipspringerdiamond mine. MSA Projects is currently exploring three other project areas inZambia for copper and gold. African Eagle is in negotiations with other potential partners regarding jointventures over projects elsewhere in Zambia and in Tanzania. John Park ChairmanAfrican Eagle Resources plc 23 May 2005 For further information Tel MobileJohn Park (Chairman) African Eagle 020 7248 6059 077 7980 1159 or Mark Parker (MD)Leesa Peters or Amanda Harris Conduit PR 020 7618 8708 07979 955 923 This information is provided by RNS The company news service from the London Stock Exchange