DAR ES SALAAM, TANZANIA - Africa Eagle Resources, a development mineral exploration firm is set to receive US$5.5 million finance from the International Finance Corporation (IFC) that will be injected into a bankable feasibility study for Dutwa Nickel Project in Tanzania.
According to Tom Butler, the IFC Head of Mining the fund will be made available at the end of January 2012 and the project is scheduled for completion at the end of this year.
Butler said that the $5.5 million capital injection will primary finance the evaluation of the company's Dutwa Oxide project, a mining venture in Tanzania hence boost African Eagle Resources.
He added that "IFC is happy to have signed an equity agreement with Africa Eagle Resources to support the company's Dutwa project in Tanzania which has a potential to become a major Africa nickel producer."
"We look forward to helping and supporting African Eagle Resources to implement the environment and social best practice for its mining activities in Tanzania," said Butler
During the last quarter of the year ended, African Eagle Resources announced that IFC, proposed to subscribe for ten percent equity share in the company through an investment of about $5 million.
The Tanzania Commissioner for Minerals, Ali Samaje told the East Africa Business Week in Dar es Salaam that Dutwa Nickel Project was expected to be among three economical nickel miners including Ntaka Hill in Nachingwea District, in southern Tanzania and Kabanga in Kagera region, in north west which will boost Tanzania's economic growth.
He said that many projects here in Tanzania such as Dutwa need financial support from investors. Thanks to IFC for its support to the project.
"Financial capability is the essential mechanism that gives confidence to the investors. The Government welcomes eligible supporters on mining projects," Samaje said.
"We are pleased to have secured the IFC's investment through the signature of the final form subscription agreement and are working hard to satisfy the final outstanding conditions so that funds can be disbursed in January 2012 whilst progressing with our bankable feasibility study for Dutwa," said African Eagle Chief Executive Officer Trevor Moss.
Moss said that African Eagle will ensure the funds will primarily contribute to the bankable feasibility study of the Company's Dutwa Nickel Project, which is already underway and is scheduled for completion around the end of 2012.
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