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African Energy sells Zambian uranium assets

1st October 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Energy developer African Energy has entered into a letter of intent with TSX-V-listed Karoo Exploration Corporation to sell its portfolio of Zambian uranium licences.

Subject to certain conditions precedent, African Energy would sell the Zambian uranium projects for $2-million in cash, as well as an equity package consisting of shares and share purchase warrants valued at $500 000.

ASX-listed African Energy said on Tuesday that the sale of the Zambian uranium assets allowed it to focus on the development of its coal projects in Botswana, and on creating viable businesses from this project.

The Zambian uranium portfolio consists of three project areas, namely the Chirundu, Kariba Valley and Northern Luangwa Valley project, which have a combined uranium inventory of 11.1-million pounds in the measured, indicated and inferred categories.

African Energy told shareholders that the sales agreement remained subject to certain conditions, including Karoo obtaining financing, the completion of due diligence studies, and approval from the TSX Venture Exchange.

Edited by Creamer Media Reporter

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