PDMZ Share Subscription

20 Dec 2007 07:00

African Eagle Resources PLC20 December 2007 African Eagle Resources plc SECOND SHARE SUBSCRIPTION BY PHELPS DODGE MINING (ZAMBIA) LIMITED African Eagle Resources plc ("African Eagle" or "the Company", ticker AIM: AFE,AltX: AEA) today announces that under the earn-in agreement signed on 3 August2006 between the Company and Phelps Dodge Mining (Zambia) Limited (PDMZ), thelatter has subscribed for a second tranche of Ordinary Shares in the Company. PDMZ has subscribed for a tranche of 4,196,293 Ordinary Shares in the Company ata price of 11.64625 pence per Ordinary Share, representing a 10% premium to theaverage closing mid-market price of AFE's shares for the 10 consecutive dealingdays immediately preceding 17 December 2007 and equivalent to a value ofUS$1,000,000 or £488,710.78. Following this issue, PDMZ now holds approximately4.76% of the Company's issued share capital. Application has been made for theadmission of the new Ordinary Shares to trading on AIM and dealings are expectedto commence on or about 24 December 2007. Under the terms of the earn-in agreement, African Eagle is spending at least 75%of the total amount subscribed on an agreed 15-month exploration programme onthe Ndola licence in Zambia. The balance will be spent on other African Eagleprojects and general working capital. PDMZ can earn a 51% interest in theproject by spending a further US$3 million on exploration and then an additional19% by completing a bankable feasibility study. African Eagle's Managing Director, Mark Parker, comments: "We are pleased thatPDMZ has completed its second share subscription, showing its continuingpositive view of the Ndola project." John ParkChairmanAfrican Eagle Resources plc 20 December 2007 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 5640 6899 Ed Portman/ Leesa PetersConduit PR+44 20 7429 6607/+44 7733 363 501 Nicola MarrinSeymour Pierce LimitedNominated Advisers & Brokers+ 44 20 7107 8000 James DuncanRussell & Associates, Johannesburg+ 27 11 8803924 / +27 82 8928052 About African Eagle African Eagle is a mineral exploration and development company operating ineastern and central Africa. The Company's principal advanced projects are theMkushi Copper Mines project in Zambia and the Miyabi gold project in Tanzania,which are being prioritised towards production. The Company also holds a largewell-balanced portfolio of promising earlier stage gold and base metal projects,including the Ndola copper project and the Eagle Eye iron-oxide copper goldproject. African Eagle's projects are in Zambia, Tanzania and Mozambique, countries whichall have highly prospective geology, relatively low above-ground risks and trackrecords of successful major investments in the metals and minerals industries. African Eagle specialises in project generation and exploration and has a highlymotivated team, proven management and an experienced board. To take itsdiscoveries into production, it seeks to sign up industry partners with recordsof successful mine development. These joint ventures and, in time, the revenuefrom advanced projects, will finance future exploration and new discoveries. This information is provided by RNS The company news service from the London Stock Exchange