[miningmx.com] — AFRICAN EAGLE RESOURCES PLCAfrican Eagle Resources said on Friday that its placing of 23.86 million new ordinary shares in the London market was oversubscribed, and it successfully raised £3.7m at 15.5 pence per share.
The proceeds of the placing, together with the company’s net cash of about £3.25m, will be used to maintain the momentum of work on the pre-feasibility study and bankable feasibility study for the Dutwa nickel laterite project in Tanzania, and to fund the group’s general working capital requirements.
“With our brokers, we have been putting a lot of effort into explaining the Dutwa project to UK institutional investors. It recently became clear that there was strong demand for our shares, not only from existing shareholders but also from other institutional investors,” said African Eagle chairperson Euan Worthington.
“Although we budgeted our current cash to be sufficient to complete the pre-feasibility study, we considered it prudent to have a reserve, in view of the weak pound and current inflationary trends,” he added.
Worthington said MWB and Anglo Pacific Group had raised their stakes in African Eagle.
He said good progress was being made on the Dutwa project.
The company has made an application for the new shares to be admitted to trading on AIM and listing on AltX, with dealings expected to commence on January 26 2011.
Following the placement, the total number of shares allotted and issued will be 409 154 128.
