African Eagle taps Jo'burg

Gold and copper play African Eagle is listing in South Africa and claims investors’ commitments to a £7.4 million placing there.

This funding, for ZAR104 million, will coincide with the AIM-quoted company’s proposed listing on the ALTX, the Johannesburg Stock Exchange’s equivalent of AIM, and follows recent relaxations of local exchange controls. It would be the biggest single fundraising for African Eagle, chaired by seasoned Australian mining entrepreneur John Park and working to develop the promising Mkushi copper project in Zambia and Tanzania’s Miyabi gold project, both in joint ventures.

Mark Parker, African Eagle’s managing director, says the company hopes to decide whether and how to develop a mine at Mkushi in the second half of next year. The Jo’burg funding will also help advance other early-stage projects in the region, including uranium prospects.

African Eagle’s shares, floated at 6p on AIM four years ago, hit 28.75p in late 2004 before sliding all the way to 9p late last year, as progress seemed slow and the focus appeared to change between projects. Now they have recovered part of the way, to 14p, valuing the company at £21.5 million, and should make more progress if momentum is maintained at Mkushi and elsewhere.