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African Eagle to sell assets and become investment company

Published: 07:25 02 Jul 2013 BST

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The African Eagle (LON:AFE) saga appears to be nearing a conclusion with the news the owner of the Dutwa nickel laterite project in Tanzania has struck a deal with mining entrepreneur Nick Clarke.

African Eagle has agreed to sell “substantially all of its subsidiaries, assets and liabilities” to Blackdown Resources, a subsidiary of Cienega, controlled by Clarke and his family trust.

It will retain a 10% free carried interest in Blackdown. African Eagle will then become an investment company.

“Having reviewed a number of business sectors and potential opportunities it is the opinion of the board that the company's investing policy should be to seek opportunities to invest in the natural resources, infrastructure and services sectors,” the mine development firm told investors.

“The board believes that the disposal will allow the company to focus on an alternative investment proposition that the board believes can provide the best opportunity for an enhancement in value to shareholders over the long term.”

On Monday AFE’s shares soared 200% as the threat of being wound up was staved off when former chairman Euan Worthington withdrew his winding up order against the Tanzania nickel explorer.

The group has been in cash conservation mode as it struggled to find the finance for Dutwa.


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